Automark Magazine April 2011

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Japanese tsunami to hitPakistan auto industryJapanese earth quake accompanied by the worstever Tsunami ravages since World War II maypotentially carry implications for global currencies,commodity markets and auto industries in thedeveloping world including Pakistan.

One of the major impacts of Japanese tsunami onauto industry due to possible disruption of suppliesof parts may consequently result in further increasein car prices in the domestic market.

Though details of the losses from the worstearthquake in Japan’s history are yet to be calculated,though the Japanese PM has called it the worstdisaster to hitting Japan since 1945.

Initial reports and analysis suggest the impact onGDP to be lower than the 1995 Kobe earthquake asthe affected areas are neither densely populated nothighly industrialized.

However, Japanese being the third-largest economyand net savers of 23.1% of GDP are expected toimpact both global currency and commoditiesmarkets.

While weaker initial demand should negativelyaffect commodities prices, Japanese repatriatinginvestments to use in relief/reconstruction activitiesshould cause Yen appreciation.

It may be noted that the Japanese yen appreciatedby 20% post Kobe Earthquake. And the currenttrend can affect autos by disruption in parts suppliesdespite inventory holdings for 35-45 days on averagewith a view to help in smooth local production inthe short-term.

Yet another impact of the Japanese disaster couldbe Yen appreciation consequently raising parts andCKD costs.

However on positive side, Completely Built Units(CBUs) i.e. cars becoming more expensive will limitinflow of used cars in the local market.As far as impact on currencies was concerned theestimates have yet to come up with possible Yenappreciation, yet it is being assessed that every 5%Yen appreciation will affect earnings of Japaneseautomobile stakeholders in the domestic market...

Editorial

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The Magazine for Pakistan Automotive Sector

April 2011 Vol 4, Issue 04

MONTHLY

Editor :

Sub Editor :Contribution Writers :

M. Hanif Memon

Dr. Raja Irfan SabirSyed Mansoor AliShahzad TabishAli HassanMohammad Owais KhanOmar RashdiS.M. AshrafMuneeb JawedSyed Haider Mehdi

Imtiaz RastgarCEO, Rastgar Group &CBI External ExpertIslamabad

Abdul Majeed SheikhPresident,AOTS-ABK Dosokai,Karachi Regional Center,& Consultant (MME),NED University - Karachi

Syed Mansoor AliBusiness ManagerCase NewHollandPakistan

Engr. IHT FarooquiGeneral Manager PlantKarakoram Motors (Pvt) Ltd.,Karachi

J. PereiraGeneral ManagerProduct Support DivisionAl-Haj FAW Motors (Pvt) Ltd.Karachi

Mustafa Hanif

Abdul Khaliq

Advisor :

Circulation Manager :

Designed By :


The Monthly Magazine for Pakistan Automotive Sector Your trust is our success

CONTENTS

Chinese bike makers in stress ahead of new budget 08-09Exclusive Article on Motorcycle Sectorby Ali Hassan

Fertilizer being the key agricultural input 10-12Cover StoryExclusive Article by Syed Mansoor Ali

Tractor makers, vendors and farmers reject RGST 13-14Special Report by M. Owais Khan

Government must initiate new schemes to 15-16promote agricultural mechanization causing huge revenue lossesExclusive Article by Syed Mansoor Ali

Winmark team participating in Shell Eco 17Marathon 2011

Get OES Power! by Orient - Product Review 20-21

Cam Shaft and Valve Train 22Exclusive Article by Omar Rashdi

Car Keys Playing a Bigger Role 23by Muneeb Jawed from NED University

Local Automobile Production Stats 2010 42-43Focusing the ups & Downsby Shahzad Tabish from NED University

Al-Haj FAW Motors achieved the 44-45brake through in the corporate sectorsby J. Pereira

Local assembled car price list 46

Toyota has been dominating the 47auto industry in Pakistanby Syed Haider Mehdi from NED University

Motorcycle Price List - Updated in April-2011 50-51

visit: www.automark.pk

e-magazine Issueat our website

The only ONLINE automotive magazine in Pakistan


The Finance Ministry’s officials haveput their heads down for making new2011-2012 budget. The manufacturingsector has already started sending theirpre-budget proposals.Many industrialists are not hopeful ofgetting any big relief from the revenue-starved government in view of a prebudget shock by announcing varioustaxation measures in a mini budgetannounced in the third week of Marchthat some decisions may become aregular feature for the next fiscal year.Some are hopeful that the governmentafter recovering billions of rupees fromthe recent budgetary measures till June2011 may think of providing someincentives and relief to the industries.After hue and cry the government hasrectified the grievances of five maintextile sectors by maintaining zerorating of tax but it is not clear as towhat alternative taxation measures willbe taken to tax the textile sector in thecoming budget.

When all the big units falling underthe organized trade and industrybodies are putting up maximum

efforts to get their proposals acceptedat any cost – a large number of small

and medium sized Chinese bikemakers have been burdened with

some bureaucratic and officialhurdles ahead of new budget

announcement.

Some government departments lookingafter the bike sector have speeded uptheir efforts to create hurdles for thelow cost bike makers.As everything has been going well afterthe July-September 2010 floods and

its negative impact on the economyfollowed by some measures takingrecently in the mini budget differentgovernment departments do not wantthe Chinese bike makers to worksmoothly.Due to ris ing farm income af terharvesting bumper wheat crop last yearand good prospects of 25 million tonswheat crop this year followed by goodcotton, rice and sugarcane and minorcrops, the growers are playing a mainrole in boosting the sales of bikesirrespective of the price hike made bythe assemblers after every threemonths.However, many salaried class peoplewho salaries are intact for the last fewyears are not freely buying the twowheelers owing to its rising prices.

Despite huge growers’ support to buybikes and less sales on account ofsalaries and low income group the bikeindustr y has performed well ascompared to other manufacturingsectors.Like past experience the Chinese bikemakers again hold responsible someJapanese bike makers who enjoy goodra pport wi th t he g ov ern men tdepartments and they encouragegovernment officials to disturb smalland medium sized bike makers.A leading Japanese bike maker stillexcels in terms of sales and productionof its bikes in rural areas mainly ascompared to its Chinese counterpartsin 70cc segment. However the leadingplayer has been trying hard to give atough time to Chinese bike makers andto capture a big market share in urbanareas especially in Karachi whereChinese bikes virtually dominate. TheJapanese bike is a favorite target ofsnatching at gun point and jacking upat various places in Karachi and this isthe main reason of Honda 70cc’slaggard sales in Karachi which nowenjoys only 10 per cent market share.For example, the Federal Board ofRevenue’s department of DirectorGeneral Valuation has again issuedvaluation advice for Chinese origin 70ccmotorcycle parts for assemblers on thehigher side.Pakistan Standard Quality ControlAuthority is also creating hurdles forassemblers for issuance of CM license.The Motor Registration Authorities isreported to have stopped registrationof many assemblers due to nonsubmission of PSQCA and EDB licensesThe Engineering Development Board

Chinese bike makersin stress ahead of

new budget

08Automark Magazine | April-2011

Automotive - Exclusive Article

continued on next page

by Ali Hassan

In the last ten years Pakistan is one of the few countries which isnot only producing motorcycles but is also exporting bikes to manycountries. Instead of providing any relief to the bike assemblers the

EDB is taking dictation from a leading Japanese bike maker tocreate bottleneck for low cost bike makers.




(EDB) has emerged as a uselessdepartment for motorcycle sector ofPakistan.In the last ten years Pakistan is one ofthe few countries which is not onlyproducing motorcycles but is alsoexporting bikes to many countries.Instead of providing any relief to thebike assemblers the EDB is takingdictation from a leading Japanese bikemaker to create bottleneck for low costbike makers.On the request of EDB, the FBR hasissued higher side valuation advise forOEM's which is set to hit theproductivity of motorcycle industriesbesides affecting the export of bike tovarious countries.

Chairman Association of PakistanMotorcycle Assemblers Mohammad

Sabir Shaikh says that the EDB shouldplay a neutral role by giving levelplaying field to all the assemblers

instead of working under an influenceof some leading bike makers.

He said that the local industry will makeevery efforts to get some incentives

from the government in the new budgetso that industry could flourish furtherfrom the record production volume of

1.4 million bike sold in 2009-2010.He added that competitive price ofChinese bikes lure the low income

group to have a bike otherwiseconsumers cannot afford to buy costly

70cc bike of Japanese origin.

Meanwhile, according to a leading printmedia report published recently, aleading Japanese bike maker hasinformed the Finance Ministry that thegrowth of bikes in the organized sectoris suffering from fairness and rule oflaw.When the government is trying everyeffort to raise revenue, many low qualitybike makers are engaged in tax evasion.The motorcy cle sec tor in t heunorganized sector evades customsduty and sales tax Rs 20,000-25,000for each low cost quality bike. Despitea number of enquiries no satisfactoryresult has emerged so far.The leading assembler informed thefinance ministry that the organizedsector is losing hope which is payingtax honestly. The government shouldensure a level playing field.On March 26, 2011 the Director GeneralCustoms Valuation has issued a rulingto determine customs value of parts of

70cc bikes of Chinese origin byassemblers.With reference to the cases of theprovisional assessment from the ModelCustoms Collectorate , Hyderabad, theDG Valuation determined value of 70ccbike parts vide valuation advice dated1.4.2010.The said valuation advice waschalleng ed before Federal TaxOmbudsman by D.S. Motors, RazzyMotors and S.S. Motors. The FTO inits findings/recommendations dated24.12.2010 held that said valuationadvice was discriminatory and directedth e Director Valuation to issuevaluation ruling concerning themotorcycle parts of OEM brands inaccordance with law in compliance ofthe FTO’s orders.A fresh meeting for determination ofvalue of the motorcycle parts of theChinese origin was convened on26.02.2011 with al l stakeholders.In the said meeting representatives ofAtlas Honda and Suzuki stated that theparts imported by the Chinese bikemakers/importers are highly underinvoiced and are being cleared bycustoms authorities without anyuniform criteria.It was also suggested that the prices ofthe raw materials are continuouslyincreasing whereas the values of theseparts are stagnant. Finally Atlas Honda

presented a comparative chart for thevalues of the other Chinese partsdetermined vide Valuation Advicedated 1.04.2010 vis-à-vis their genuineparts and stressed that the value sodetermined are still on the lower sidewhich needed to be enhanced.D.S. Motors and Razzy Motors alsopresented their proposals for thevaluation of these goods.The import data from China for importsof relevant period i.e. 90 days was

scrutinized which showed that the mostof clearance are being made on weightbasis which also is th e unit ofmeasurement as per tariff.However in order to ascertain the actualweight of these parts physic alweighment was carried out in presenceof the representatives of D.S. Motors.The values which are apparently grosslyunder invoiced could not be relied uponhowever there are instances whererather fair values have been assessedby customs and have accordingly beenaccepted by the importers.Such reliable import values werefurther worked upon by adopting actualweight of each item, physically obtainedfrom the market as referred above.Further in order to take into accountthe actual market prices, survey interms of section 25(7) of Customs Act1969 was also carried out whichindicated that there are various typesof parts i.e. OEM, replacement andgenuine etc however due to marketdistortions, reliable prices except forfew items could not be obtained.Similarly, motorcycle parts are highprecision items and there is no reliableinformation available on record forc onsti tuent mat eri als not anymanufacturer or assembler has everprovided such information required forassessment of these items in terms ofsection 25(8) hence the said methodcould not be approved in instant valuedetermination.In view of the above, the valuation ofthe following motorcycle pa rtsimported by the assemblers afternecessary adjustments has beendetermined in terms of Section 25(9)of the Customs Act 1969.The DG Customs Valuation has pointedout that the custom values determinedunder this valuation ruling shall bea ppli ca b le c ust oms va lue forassessment of the relevant goods untiland unless revised or rescinded by thecompetent authority.Revision petition/review applicationagainst this valuation ruling may befiled before the director general ofvaluation under Section 25(D) of theCustoms Act 1969 within 30 days fromthe date of issuing of this ruling.According to Sabir Shaikh there arearound 51 parts (being imported fromChina) on which the valuation rateshave been fixed on the higher side tosatisfy the Japanese assemblers. ……


should be 2 : 1 : 0.5. Whilethe ratio of nitrogen isexceeding to a great extentas in the year 2009-10 itwas 4: 1: 0.03. The reasonsof this imbalanced use areas such:

a) Lack of support at state level vis-à-vis pricing. Fertilizer market isderegulated in Pakistan, where assubsidies exist in many developingand developed countries to supportfarmers in the farm inputs. India, forinstance, gives huge subsidies onfertilizers and as a result change ininternational prices have minimumimpact on farmers. RecentlyGovernment of Pakistan (GOP) hasapplied General Sales Tax (GST) @17% on fertilizers that is deemed asdiscouragement for farmers. The GSTapplication is projected to decreaseDAP usage by 20%, potash 30% andurea consumption by 2%. This willfurther aggravate the situation andreduced and unbalanced fertilizerusage will enhance than previous. Asa result it will adversely affect farmeconomics that will hurt nationalagricultural output.

b) Since GST is calculated aspercentage of product price hence itsimpact in absolute value will be moreon expensive fertilizers like DAP andPotash. So price disparity betweenUrea and DAP /Potash will increase,that will further deteriorate the N: P:K ratio at farm level and enhanceimbalanced fertilizer use.

2. Farmers ignorance onthe benefits of balancedfertilization. Vast majorityof farmers does not usefertilizer at recommendedrates neither they go forsoil analysis.

3. Quality control: Problemslike fake fertilizers andshort weight bags do existin market.

4. Use of counterfeit bags:Bags of premium brandsare used to sell fakefertilizer or product whosequality is not known. Thesebags are found shortweight as well. The issue isworst with DAP fertilizerbeing most expensive. Suchpractices are affecting thegoodwill and farmer's trust.

The field studies revealed that farmersdepend solely on the advice andknowledge of the fertilizer sellers todecide on quantity and type of fertilizer.The Di-ammonium Phosphate (DAP)which is mainly used for wheat crop iscommonly replaced by urea incase ofthe shortage of money. The scarcity ofwater is another factor subside theefficacy of fertilizer. The recent priceincrease by 10 to 20 percent will furtherdiscourage the farmers towards the useof DAP and other expensive but cropspecific fertilizers.The scarcity of water is another factorsubside the efficacy of fertilizer. Therecent price increase by 10 to 20percent will further discourage thefarmers towards the use of DAP andother expensive but crop specificfertilizers.A fertilizer seller in Okara gaveme an example to explain as howthe financial position of thefarmer affects the purchasedecision and made them tocompromise for options that areharmful instead of bringing anybenefit.In the below example thedifference of Rs. 2880 forced thefarmer to pick an optioncompletely off setting therequired chemical compositionto applied.

Considering the ground reality theabove narrated situation is nothing asthere is a good percentage of smallfarmers who cannot afford to applythe prescribed fertilizer dose. Theanother dilemma is the absence ofagricultural extension services thatprovides space to quacks to prescribewhatever beneficial to them ignoringthe actual requirements of the soildeficiency/requirement in terms ofnutr ients a nd org anic ma tter .Once for an agricultural project inSindh, I had a chance to work closelywith the field advisory staff of EngroFertilizers Limited to take their adviceon soil analysis/composition and waterquality of the entire project areacomprising of 14,000 acres. They actedpromptly and took more than 50 soilsamples along with few water samplesto advice on the selection of fertilizerfor the project. The service was highlyprofessional and totally free of charge.The foreigners involved in the projectwere impressed with quality of serviceand the standard of soil testing lab. Itwas brought to my knowledge andsubsequently confirmed in the fieldthat this service is available free ofcharge to the farmers irrespective oftheir land size holding or financialposition with no pressure of buying thefertilizer from Engro fertilizers Ltd.To improve/better th e fertil izersituation in Pakistan, the governmentshould revive the subsidy on fertilizerfor farmers, make extension servicesavailable to the farmers' doorstep, takestern actions against fake fertilizercompanies (recently the CrimeInvestigation Agency (CIA) Islamabad unearthed a fake fertilizer companysecretly operating in suburb of FederalCapital .Huge quantity of raw materialand machinery being used to prepareurea fertilizers and pesticides wereseized), stop gas load shedding andprovide required feed gas to fertilizersector, continue subsidy on feed gas,review the imposition of general salestax on agricultural inputs that will resultin unachieved production targets ofwheat and other Rabi crops and keepcheck on the uncontrolled increase inpr ices of urea fertilizer by themanufacturing companies. These steps,for sure, will bring sub stantialimprovement in the crop yield......

Automark Magazine | April-2011 12

Exclusive Article on Fertilizer sector by Syed Mansoor Ali

Download or read this exclusive article atour website: www.automark.pk



Agriculture Sector - Exclusive Article by Mohammad Owais Khan

Euro-F

The imposition of 17 per cent generalsales tax on tractors, pesticides,fertilizer, seeds and other agricultureinputs has caused a stir among thesmall and medium sized farmersespecially who cannot afford to payhigh price for these items.Consumers already under severepressure of surging food prices andutility bills will now have to pay moreas tax on agriculture inputs will inflateprices of eatables making life of peoplemore miserable.Farmers say that they annually use 130million bags of urea and 30 millionbags of DAP seed worth Rs 100 billionand pesticides worth Rs 25 billionbesides spending Rs 50 billion on agrimachinery which are already highpriced in the country.This RGST would further increase thecost of inputs by 17 per cent thusmaking them beyond the reach offarmers of average and small holding.The average price of tractor hasincreased by Rs 100,000 after GSTimposition but small and medium sizedgrowers cannot afford it.Tractor makers have already beenfrustrated by 50 per cent decline in

their sales and one of the small tractormakers said that he had sold only twotractors in the last fifteen days.Farmers said that the cumulativeimpact of hike in tractor price coupledwith rise in agriculture input cost willcause a drop of 20-25 per cent in futureproduction of various cash crops likecotton, sugar and rice.They said that they have reduced theirtractor buying by 50 per cent afterincrease in prices of tractors while otherfarmers are waiting for removal of salestax.

One of leading coalitionpartners of the governmenthas been asking thegovernment to tax the

agriculture landlords andbig growers but it does notmean to impose tax ontractors, pesticides,fertilizer, seeds andagriculture inputs whosedirect impact will be borneby the end users in shapeof price in edible items.Perhaps the big growers having biglands producing area and connectionsin the government circles may notsuffer heavily from the recent levy ofRGST. The small and medium sizedgrowers having limited land availabilitywill be the main victims as some threeto five growers usually jointly purchaseone or two tractor to work on theground for better yield from variouscrops depending on th eir tu rns.It is also feared that many farmersunable to bear the extra cost for tractorsand inputs may indulge in wrongpractices by using sub standardpesticides, seeds and fertilizers.The farmers have strongly asked thegovernment and members of theparliament to immediately take action

Tractor makers,vendors and farmers

reject RGSTIt is not clear whether the government will ask theassemblers to again make arrangement for delivery

of tractors to the farmers and growers or it willrely on import of used tractors.



Agriculture Sector - Exclusive Article

and direct the Federal Board ofRevenue to withdraw these SROsforthwith to save the farmers, peopleand frail economy of Pakistan fromsevere damage failing which thefarming community as a whole wouldbe forced to take extreme measures inorder to redress th e grievances.

The increase in prices oftractors after the imposition of17 per cent sales tax has hitthe sales of tractors as farmersand growers have becomereluctant whether to buy thefarm machinery or wait for theremoval of sales tax.Farmers and tractor industry have saidwhen the government can rescue thefive main textile sectors by maintainingthe zero rated tax despite taking firmdecision on March 15 then it shouldalso treat the same to the main sectorsof the agriculture sector whose negativeimpact would be more severe than thetextile sector.Farmers said very few growers arebuying tractors while others haveadopted wait and see attitude. Theconcerned bodies of the farmers’community have been trying to meetthe higher ups of Finance Ministry andFederal Board of Revenue on issue ofsales tax on tractors.Soon after the imposition of 17 per centsales tax on tractors in the third weekof March, the tractor industry faced aninstant shock when farmers hadcompletely suspended the purchase.A leading tractor maker said the buyingof tractors by farmers has slightlyimproved but it is still 50 per cent lessas compared to 175-200 units a dayahead of mini budget.The industry had already asked thegovernment to impose sales tax inphases like seven to eight per cent infirst phase and let the industry andgrowers to absorb this impact but thegovernment had straight away imposed17 per cent.Many growers who are in need for

tractors are buying tractors while othersare waiting in a hope that thegovernment would lower the GST by50 per cent or may remove itcompletely.Pakistani tractors were competing withIndian tractors in various markets dueto competitive price factor but nowsituation had changed.Sales of tractors had been severely hitafter 17 per cent GST and situation intractor market is highly uncertain thesedays.Tractor parts makers have suggestedthe government to impose sales tax ateight to 10 per cent in first phase andthen increase the rate by 2.5 per centevery year.Meanwhile a tractor vendor said thata leading tractor maker in the lastmonth had g iven firm hig herproduction schedule for April and afterimposition of 17 per cent sales tax thecompany advised their vendors bytelephone to stop all parts suppliesimmediately. Whenever it will requireparts then it would call the vendors forsupplying requ ired components.Market reports said that tractor exportshad also become suspended afterimposition of 17 per cent sales tax. Thelocal industry does not export tractorssince the government has restricted itsexport. However, some market peopleused to lift the tractors from themarkets and export it to Afghanistanmainly and few units to Sri Lanka.Total tractor sales (Fiat and MasseyFerguson) during July-February 2010-2011 stood at 45,519 units as comparedto 45,523 units in the same period oflast fiscal year.The federal government has directedthe Zari Taraqiati Bank Limited to workout delivery of 10,000 tractors in thesecond phase of federal government’ssubsidized Benazir Tractor Scheme.It is not clear whether the governmentwill ask the assemblers to again makearrangement for delivery of tractors tothe farmers and growers or it will relyon import of used tractors. Farmerswill get a subsidy of Rs 200,000 on

each tractor under the scheme.There are media reports quoting areport of Auditor General of Pakistanthat relevant rules and regulators wereblatantly violated in Punjab inaccommodation to blue eyed boys bydoling out tractors under the GreenTractor Scheme causing a loss of Rstwo billion to the national kitty .However, the tractor and vendors areworried over the reports that thegovernment is considering allowingused tractors import when the industryis already battling for its survival aftertough decisions taken in the minibudget.The Commerce Ministry is reported tohave recommended the EconomicCoordination Committee (ECC) toallow the import of five-year-old usedbuses, tractors, trucks and vans undergift and baggage schemes. However,the ECC meeting on Thursday did nottake up the matter.Vendors said that when the industry isfully meeting the requirement of thefarmers and growers then why thegovernment is considering allowingused tractors as this decision will resultin closure of two main manufacturersand their vendors besides causing manypeople to lose their jobs either directlyor indirectly.They said due to localization of 90 percent parts Pakistani tractors are thecheapest in the world and these areexported indirectly to Afghanistan andother countries.Market people fear that in order toprovide benefits and facilitate thepolitical workers and friends the PPPgovernment can do any thing to hurtthe feeling of the main stakeholdersthus putting on stake thousands ofpeople jobs.Farmers have said that they will chalkout their future strategy in case thegovernment does not reverse thedecision on RGST on tractors and otheragriculture inputs while the tractorindustry and vendors are also takingup the issue with the relevantministries…..

The farmers have strongly asked the government and members of theparliament to immediately take action and direct the Federal Board of

Revenue to withdraw these SROs forthwith to save the farmers, peopleand frail economy of Pakistan from severe damage failing which the farming

community as a whole would be forced to take extreme measuresin order to redress the grievances.


The Government of Punjab, agriculturedepartment, deserves commendationon running a successful campaign todeliver q ua lity implements onsubsidized rates to local farmers ofPunjab.Pakistan is striving hard to achieve acertain level of mechanization toenhance productivity and to feed itspopulation, being the sixth largest int he wor l d. The e ffo rt s seeminconclusive and less effective becausethe implement industry did not comeout of its traditional black smithenvironment. As a result, it did notmake any significant progress towards

the introduction of good qual ity,properly designed and modernagricultural equipments covering theentire process of agriculture right fromland preparation to harvest unti lstorage. Therefore, it is appropriate tosay that implement manufacturingindustry maintained the status-quo andkept manufacturing the same old 7 or11 tine cultivator, rear blade and tractortrolley. Many years back FarmMachinery Institute, NARC designedand developed Axial flow thresher andReaper, which was later on introducedto the local manufacturers to beengaged in mass production. This wasa great step as it indicated that thenation will be able to produce varietyof equipments that will be useful forthe different stages of cropping andthat they were to be locally developeda nd produced in the country.Unfortunately, due t o var iousconstraints, which are quite commonin government institutes/departments,repetition of such endeavors was notseen.

A recent visit to theF edera l Ca pi ta lTerritory allowed met o m e e t m ycolleagues from theA g r i c u l t u r eU n i v e r s i t y ,Faisalabad. Duringa conversation withMr. Mohammad Aamir, assistanta g r i c ul t u ra l en g i n e er (F i e l dOperations), Rawalpindi, I inquiredabout the workings of his departmentand asked him to shed light onsignificant milestone achievementsmade in the field of agriculturalmechanization. It was brought to myattention that they recently completeda campaign to deliver 364 implementsin the Rawalpindi division on a 50%subsidy to the local farmers. Thisproject, titled “Farm Mechanization forFood Security , 2009-2010,” wasinitiated by the Honorable Chie fMinister of Punjab, Mr. Shahbaz Shariffor the province of Punjab. Finally,under the fraternity of the Honorable


Agriculture Sector - Report by Syed Mansoor Ali

Government must initiate newschemes to promote agricultural

mechanization through thedisbursement of quality implements

to its farmers

Chief Minister of PunjabMr.Shahbaz Sharif

Minister of AgriculturePunjab

Mr. Malik Ahmad Ali Aulakh

Secretary AgriculturePunjab

Mr. Arif Nadeem

D.G. Field, PunjabDr. Muhammad Yasin

The success of this project encourages me to appealto the Prime Minister to initiate and subsidize othersimilar schemes throughout the country in order to

enhance mechanization through the allocationof quality implements with proper training

for the farmers.


Minister of Agriculture, Punjab (Mr.Malik Ahmad Ali Aulakh) a practicalshape was given to the program bySecretary Agriculture (Mr. ArifNadeem) and Director General Field,Punjab, Lahore (Dr. Muhammad Yasin).This accomplishment has encouragedme to further explore the details of theprogram and determine whether thesaid benefits of the initiative actuallybenefited and reached to the grass rootlevels or if it fell short as usual. Tosati sfy my curiosity, I fur therquestioned my friend, Mr. MohammadAamir and was quite satisfied by hisresponse, that has strengthened mydecision to share information aboutthis endeavors, set forth by governmentofficials, with my readers. I want tocommend the various governmentofficials for a job well done and also toencourage society-oriented schemes,which seem to be getting scarce in oursociety.

The criteria set forth forthe local farmers toparticipate in the programwere as such:1. Should hold 5-50 acres ofland.2. Should posses a minimum50Hp tractor.3. Should submit duly filled-inapplication form.The criteria established by AgriculturalDepartment to ensure transparencyand ease of operations (usual lycomplicacies give way to corruption)were as such:

1. Applications were scrutinizedby Deputy District RevenueOfficer.2. Computer draw was avoidedto eliminate doubts of any pre-programming to benefit specificfarmers. Manual draw wasconducted in f ront of theparticipants and names wereannounced then and there.3. Agricultural Department haves e l e c t ed 1 18 i mp l e m en tmanufacturing companies,meet ing their cri teria, tomanufacture the implements asper the list given. In the past,there were only 3-5 companies

listed who were exploiting thecustomers due to there being sofew options for the farmers tochoose from.4. Drawings and the list of selectedi mp l em e n t s a s pe r th erequirements of that specificagricultural cluster were providedto the manufacturers.5. Prices were fixed according tothe prevailing market prices ofsimilar equipments.6. The equipments were offeredon 50% subsidized rate to thefarmers. The remaining 50% werepaid to the manufacturer by theD G field Punjab after confirmingthe delivery of the said equipmentto the farmer. The remainder waspaid to the manufacturer througha pay order in the name of themanufacturer whom they selectedto get the implements from.The eq uipme nt s se le ct ed f orRawalpindi division were carefullyselected after taking into account the

fact that the major portion of thisdivision, which is commonly called asPotohar Plateau, is a typical aridlandscape with denuded and brokenterrain characterized by undulationsand irregularities compared to theplains of Punjab.T he im p l em e nt s a n d t hecontrolled prices for this projectwere presented in the given table.Vigilant eyes were kept by theconcerned officers to arrest any type ofmalfunctioning in the system. Farmerswho got the implements were providedtraining on the use of equipments.The program was highly appreciatedby th e farmers and th e positiveresponses made it possible for the ChiefMinister, Punjab, to cut down theduration of the project from three to

two years.Engr. Mohammad Aamir, whoseresponsibility was to monitor andevaluate the field execution of theprogram said that this scheme hascont ri buted i mmensely in t hepromotion of mechanization of thisarea which is under-developed and lessprivileged than the plain areas ofPunjab.The success of this project encouragesme to appeal to the Prime Minister toinitiate and subsidize other similarschemes throughout the country inorder to enhance mechanizationth rough the allocation of qualityimplements with proper training forthe farmers. This will providesubstantial help to the farmers ofPakistan to try out new modernimplements as per specific jobrequirements to understand theimportance of using right equipmentfor the right job instead of usingcultivator for every job ruining the soilstructure. This will be the first step tostart building the understanding of thefarmers towards advancement made inthe field of Agricultural mechanizationswith the i nvent ion of modernimplements and equipments bringingefficiency and effic acy in cropmanagement. This will attract foreigncompanies to initiate joint ventures andli censi ng ag reement s to s tar tmanufacturing quality equipments inPakistan. Logically speaking it is theright time to focus on this area as inthe past decade several tractor subsidyschemes were launc hed by thegovernment that helped the countryre-enforce a nd streng then theavailability of the source of power atthe farm without which nothing couldbe done at the farm.The farmers are already upset with theincrease in special excise duty from onepercent to 2.5 percent and thewithdrawal of GST exemption ontractors. This ordinance has hit thefarmers below the belt. They know thatit is not the only increase they have tobear but its implications in the shapeof reduction of the profit, recent 2percent increase in power tariff, and9% increase in POL will make themi nc rea se t he pr ic e s of t hes ecommodities (tractors, ferti lizers,pesticides and implements) pretty soon,which will be a huge disadvantage anddrawback for agriculture in Pakistan.


Agriculture Sector - Report by Syed Mansoor Ali


The talent of our nation has alwaysbeen undermined but it rises tooccasion whenever challenged. Andsuch a success story has just come up.Recently, a group of talented Pakistanistudents have embarked on th edevelopment of a car called Uzba whichtargets to run 200 km in one liter offuel! Now that is an amazing talent.The ambitious students call themselves‘WINMARK’. The purpose of designingthis vehicle is to represent Pakistan inthe global car design competition, ShellEco Marathon.The Shell Eco Marathon challengesstudents from worldwide to design,build and compete their energy-efficient vehicles. The car with that runsthe most number of miles using leastamount of fuel wins. The tournamentis held separately for Europe, Americasand Asia. The Asian chapter takes placeat the official Formula1 track – SepangInternational Circuit, Kuala Lumpur,Malaysia.

Accepting this challenge, a group ofhardworking students from NEDUniversity of Eng ineer ing andTechnology joined together andWinmark came into being. Thesestudents belong to Mechanical andElectrical Engineering departments.The car “Uzba” was made back in 2010when it offered an appreciative mileageof 80 km per liter of petrol. The carrepresented Pakistan in the 2010 ShellEco Marathon and won the hearts ofmany engineers and scientists there.Last year sponsors of this car were ElfyCorporation, Habib Bank Ltd andOrient Energy Systems.Once again, the team is planning to hitthe 2011 Eco Marathon. The car modelis under rigorous optimization to reach2 00 km per li t er o f pe t ro l.Modifications include better fuelconsumption mechanism, powermanagement and substantial weightreduction.The team leader, Haris Rehman says,

“I t ha s b een aremarkable journey;from my drawingb o a r d t o t h eformula1 track ofMalaysia. When Iraised the Pakistaniflag with my car overthere, my heart brimmed with pride. Ihave a firm conviction that this willmaterialize into a novel Pakistanicreation.”Team Winmark’s Marketing & TechCoordinator, S. M. Ashraf says, “Thisyear, we highly anticipate to win. Thecar project is an excellent opportunityfor companies and venture capitaliststo boost their brand power andestablish themselves as tech-friendlycompanies. And by the grace of Allah,we have been receiving great response.”The Shell Eco Marathon is definitely afruitful arena for corporations to createmarketing hype. More than 6000people, 300 representatives fromsupporting organizations and mediafrom 20 countries will be attending thegrand event.Uzba has also received great feedbackin the public displays at Creek Club,Park Towers, Pearl Continental Hotel,Expo Center and other places. A highlymotivating promo of the team isuploaded at YouTube, ‘Car made byTeam Winmark’. The team also runs aFacebook group/page with the titleTeam Winmark.With such great efforts and the wellwishes of the Pakistanis, TeamWinmark is very optimistic about 2011and is working day and night toaccomplish its objective. Uzba is all setto rock the Shell Eco Marathon 2011.


Student Corner - Review

Winmark teamparticipating in Shell Eco

Marathon 2011

by S. M. Ashraffrom NED University - Karachi

The team leader, Haris Rehman says, “It has been aremarkable journey; from my drawing board to the formula1track of Malaysia. When I raised the Pakistani flag with mycar over there, my heart brimmed with pride. I have a firm

conviction that this will materialize into anovel Pakistani creation.”


Thunderst orms,m o n s o o n s ,cyclones, floods ando t h e r n a t u r a ldisasters severelydamage electricalsystems, causingpower outage. As

our lives become more and moredependent on the electricity a powerbreakdown can cause a standstill. Evena short spell becomes unsettling. Peopleuse flashlights and candles to managesome of their chores, hoping that thepower will be restored soon. Today, aspower breakdown becomes a norm ofa typical day in Pakistan, surviving

without a power b ackup seemsunimaginable. One cannot bring theirlife to a halt waiting for power to beresumed.Power outages affect more than oursens e of well-b eing . A po werbreakdown can mean disaster! Not onlydoes the food in the refrigerator getsspoilt, but inadequate cooling can alsocause heat stroke or heat exhaustionespecially in children and the elderly.In such a situation, backup homegenerators come as a saviour! They arethe only reliable protection to beat thesummer heat and endure the powercrisis.Portable generators are affordable and

available in different ratings dependingon your power requ irement anddefinitely fuel economics. Possessingless knowledge can easily tempt you topurchase a genset from companiesnever heard of or a UPS system which


Power & Energy - Product Review

Don’t Let Your Life Cometo a Standstill

When the PowerGoes Out – Get OES Power!

Orient Energy Systems (Pvt.) Limited (OES), one of themost revered and fastest growing companies in Pakistan

is a leader in delivering conventional and novelindustrial engineering solutions not only in Pakistan,but also in Bangladesh, Middle East and a growing

network in other Asian countries. Starting its operationsin the year 1996, the Company has served private,

public and government sector and won severalnational and international accolades over the years.



Power & Energy - Product Review

cannot run heavy domestic appliances.For a power backup system to deliverresults as expected, you need topurchase the right sized generator.First, you need to determine yourpersona l requi reme nts. S ma llgenerators deliver enough energy torun a few lights and fans which cankeep you comfortable for a short period.Or you can also install a biggergenerator, if you wish to run a few morethings other than lights and fans. Next,you need to consider how much youcan spend. The money you investdirectly affects the quality of backuppower supply that you will receive. Doyou want to shell out money for agenerator which runs refrigerator fora few minutes, or for several hours?Being Pakistan’s one of the leadingmultinational engineering company,Ori ent knows what y ou need!Orient Energy Systems (Pvt.) Limited(OES), one of the most revered andfastest growing companies in Pakistanis a leader in delivering conventionaland novel industrial engineeringsolutions not only in Pakistan, but alsoin Bangladesh, Middle East and agrowing network in other Asiancountries. Starting its operations inthe year 1996, the Company has servedprivate, public and government sectorand won several nat ional andinternational accolades over the years.Serving valued clients one after anotherOES, a firmly established name in thepower sector now introduces OESPower; your portable emergencybackup system that promises a packageof superior quality product withexceptional features and servicesdelivering you convenience andoperational excellence.

Salient Features of OESPower:• Automati c ‘ low-oi ls h u t do w n ’ p r e ve n toverheating and enginedamage• Automat ic Vol tageRegulation (AVR) providesconsistent stable powerlabels.• Spark arrester to reducethe risk of fire.• Circuit breaker protectionto provide generator anduser greatest degree ofprotection.• Dual-element air cleanerto protect engine in dustyconditions.• Digital data display tohelp you see the totalrunning hours, per sessionrunning time, voltage &frequency.• Exceptional quality &reliability.• Designed to run smoothlyfor longer hours.• 100% copper winding.• 24/7 helpline.• Doorstep servi ces.Kee pin g i n v i ew t he mark etrequirements, OES Power comes inseven ratings each manufactured tocarry a different power load. Purchasinga small generator that cannot carry theload it has been acquired for isworthless. Similarly, buying a large

generator when your requirement isrela tively smal l forc es you tounnecessarily increase your fuelexpense. Below is a load chart that canhelp you determine your requirement.With the help of Orient’s trained dealersyou can mix and match variousappliances to evaluate which gensetmight be best suitable for your powerneeds.

• NOTE: Wattages are only anapproximate, for exact wattage pleasecheck the data plate or operator’smanual of the item you wish to power.Portable generators are safe, affordableand can keep you modera telycomfortable. Take some time toconsider your needs and prepare forthe hot summer days now. Preparingnow will give you and your family oneless thing to worry about. With OESPower you don’t have to worry aboutoperational tribulations as OES is asymbol of top quality not only in termsof products , but also the peopleassociated with it. The team comprisesof qualified engineers, businessprofessionals and highly experiencedtechnicians and field staff who areequipped with the spirit of keeping thecustomer satisfaction at top priority.Be it large scale power generationrequirement or standby portablegenerators, Orient Energy Systems hasa solution for all your power needs.OES Power is the intelligent choice!For Comments & Feedback contact:

Corporate CommunicationsDepartmentOrient Energy Systems (Pvt.)Limited021-111-507-507

The team comprises of qualified engineers, businessprofessionals and highly experienced technicians and field

staff who are equipped with the spirit of keeping thecustomer satisfaction at top priority.

Be it large scale power generation requirement or standbyportable generators, Orient Energy Systems has a

solution for all your power needs.



Automotive Sector - Exclusive Article

One of the main component in engine,camshaft takes the main attention inworking because it has very importantwork to do. Camshaft is a device whichchanges its rotary motion into valve’slinear motion. It has valve train ofengine which operates the timing ofvalves according to the engine strokes.There are two types of valve which ithas i.e. Intake and Exhaust valves. Therocker arms which push the valve bythe force of cam loop. The Valve returnsspring which returns the valve afterpushing by means of spring stress. Inold engines, push rod was being used,that had the side camshaft system butin past years that is totally transferredto over head camshaft.All new valve timing technologiesdepend upon the working of camshaft;they all are varying the timing of valvewith the help of camshaft. It plays acolossus role for enhancing the newtechnologies in engine; it also used toexaggerate the power of engine byvarying the valve timing operations.The new technologies like vvt, vvt-I,Vti, Vtec, i-Vtec etc. have found the wayof changing valves durations in orderto make better production of power athigh speed.The key parts of any camshaft are thelobes. As the camshaft spins, the lobesopen and close the intake and exhaustvalves in time with the motion of thepiston. It turns out that there is a directrelationship between the shape of thecam lobes and the way the engineperforms in different speed ranges.To understand why this is the case,imagine running an engine extremelyslowly at just 10 or 20 revolutions perminute (RPM) so that it takes the piston

a couple of seconds to complete a cycle.To actually run an engine this slowwould be impossible, but let's imaginethat we could. At this slow speed, wewould want cam lobes shaped so thatjust as the piston starts movingdownward in the intake stroke, theintake valve would open. The intakevalve would then close right as thepiston reaches the bottom and theexhaust valve would then open right atthe end of the combustion stroke andwould close as the piston completes theexhaust stroke.This kind of setup would work reallywell for the engine as long as it ran atth is very slow speed. Now whathappens if you increase the RPM?When you increase the RPM, the 10 to20 RPM configuration for the camshaftwill not work very well. Just say if theengine is running at 4,000 RPM, thevalves are opening and closing 2,000times every minute, or 33 times everysecond. At these speeds, the piston ismoving very quickly, so the air and fuelmixture rushing into the cylinder willalso be moving at a very quick rate.When the piston starts its intake strokeand the intake valve opens, the air/fuelmixture in the intake runner starts toaccelerate into the cylinder. By the timethe piston reaches the bottom of itsintake stroke, the air/fuel mixture ismoving at a pretty high speed. If youwere to slam the intake valve shut, allof that air/fuel mixture would come toa halt and will not enter the cylinder.By leaving the intake valve open a littlelonger; the momentum of the fast-moving air/fuel mixture continues toforce air and fuel into the cylinder asthe compression stroke is started bythe piston. In theory the faster theengine goes, the faster the air/fuelmixture flows and the longer we wouldwant the intake valve to stay open. Wewould also want the valve to open widerat higher speeds. Also affecting thecams performance is lift, the duration,overlap and timing.

LiftLift refers to maximum valve lift. This

is how much thevalve is "lifted" offits seat at the camlobe's highest point.The inta ke a ndexhaust valves needto be open to letair/fuel in a ndexhaust out of thecylinders. Generally, opening the valvesquicker and further will increase engineoutput. Increasing valve lift, withoutincreasing duration, can yield morepower without much change to thenature of the power curve. However,an increase in valve lift almost alwaysis accompanied by an increase induration. This is because ramps arelimited in their shape which is directlyrelated to the type of lifters being used,such as flat or roller.

DurationDuration is the angle in crankshaftdegrees that the valve stays off its seatduring the lifting cycle of the cam lobe.Increasing duration keeps the valveopen longer, and can increase high-rpm power. Doing so increases theRPM range that the engine producespower. By increasing duration withouta change in lobe separation angle willresult in increased valve overlap.

OverlapOverlap is the angle in crankshaftdegrees that both the intake andexhaust valves are open. This occurs atthe end of the exhaust stroke and thebeginning of the intake str oke.Increasing lift duration and/ordecreasing lobe separation increasesoverlap. At high engine speeds, overlapallows the rush of exhaust gasses outthe exhaust valve to help pull the freshair/fuel mixture into the cylinderthrough the intake valve. Increasedengine speed enhances the effect.Therefore increasing overlap, increasestop-end power and reduces low-speedpower and idle quality.

Quotation:Impossible is not a fact, it’s anopinion. – Muhammad Ali

Cam Shaft and Valve TrainIf crankshaft is the heart of an engine, then the camshaft andvalve train have to be the brains of the operation. Timing the

opening, closing, lift, and duration of each valve event are centralto increasing power and torque.

by Omar Rashdifrom St. Patrick’s Technical Institute


Composed by: Muneeb JawedAutomotive Engineering NED Uuniversity


Exclusive Article

If you believe that your cell phone isonly capable of making a phone call,then you also likely believe that yourcar key is only able to start yourvehicle’s engine. The fact is, much asyour cell phone has evolved into amultitasking communications device,your car key has undergone quite anevolution since the simple brass keythat turned the engine of the Model.Motivated by sophisticated technology,customer convenience and industryefforts to reduce auto theft, automotivemanufacturers are introducing high-tech car keys that do more than justunlock your door and start your car.It started innocently enough when keyfob technology first emerged in the1980s...a convenient device to remotelylock and unlock doors, open the trunkor activate car alarms.Vehicle security took on addedimportance in the 1990s when vehiclethefts were costing car owners billionsof dollars a year, thus spawning thedevelopment of anti-theft ignitionimmobilizers.Ignition immobilizers consist of anelectronic chip in the key thatcommunicates with an on-board vehiclecomputer. When the key is inserted inthe ignition, its chip performs anencrypted communication with thecar's computer, asking it if analgorithmic code? A number withbillions of combinations is correct? Ifthe code is correct, the computer startsthe car. The code is reset with adifferent series of numbers ea ch timethe key is used.Due to successful advancements inautomotive engineering, that's nowancient technology. Today's new keytechnology has progressed far beyondignition immobilization. In some newsystems, you don't even need a key!One of the new systems on the marketallows the owner to activate the lockingand starting systems by simply havinga keyless fob in a pocket or purse -within a few feet. Imagine struggling

with an armload of groceries. Uponreaching your car, instead of fumbling for car keys, you simply pull open thedoor, unload your packages, jump in,hit the engine "start" button and driveoff. How does it do that? When theowner approaches and touches the car,antennas pick up the signal and validatethe key code. Inside, another antennavalidates the keyless fob's presence,allowing the owner to simply press thestart button and drive off.Another new car key technology isgiving parents of teenage driver’s addedpeace of mind. This type of car keyallows parents to add all types of remotesupervisory features to a new car. Eachkey can be programmed to limit topspeed, add extra seat belt warnings,and limit the volume of the car stereoand more.For example, the seat belt-reminderfeature can be programmed tocontinuously alert the driver to buckleup rather than shutting off after a fewminutes. And it can shut down theaudio system and add a reminder onthe display that lets the occupants knowthat buckling up will un mute thestereo. Additional programming caninclude an early low-fuel warning thatcan be set to go off at 75 miles to emptyinstead of 50, and limits can be placedon the vehicle's top speed.As with all new technology, these newadvanced keys take some getting usedto. For one, today's keys, with all theirelectronics, can be expensive to replace.Keys and key fobs can cost from $50to $300 to replace, which includes the

h a r d w a r e a n dr ep ro g ra m mi n gcosts.a learning curvewhen it comes togetting acclimatedto these advancedkeys, especially thesophisticated keyless systems. Forexample, users of keyless systems haveto remember to turn off the engine afterexiting the car and remind themselvesto give the fob to valet parkingattendants.So where is the future of the "key"heading ?How about using your car key as areplacement for your credit card? Theidea behind this developing keytechnology combines a high-techmicrochip system with a vehicle's keyfob to produce a secure contactlesspayment system and key in onepackage, ready to pay for everythingfrom parking, tolls and maintenance,to groceries and clothing. Suchintegration of devices into a single unit,especially disparate technologies likekeys and credit cards, functions tosimultaneously downsize the growingamount of "stuff" we have to tote foreveryday survival while bonding itsusers into that particular system...astrong loyalty market ing p loy.Experts believe the next evolution willprobably be biometrics...recognizingfingerprints, an iris or speech. Muchresearch and development remains asbiometrics entails an order of difficultythat is much higher, particularly sinceit's hard to recognize bios systemsaccurately and quickly. But make nomistake, like everything else on ourcars, vans, SUVs and trucks, key andkey fob technology will continue to gainin sophistication.Delphi Corporation is poised to applyits expertise and know-how to providevehicle manufacturers and consumerswith in-vehicle entertainment andconnectivity....

Car Keys Playing a Bigger Rolethan Simply Starting the Engine

Another new car key technology is giving parents of teenagedriver’s added peace of mind. This type of car key allows parents

to add all types of remote supervisory features to a new car.Each key can be programmed to limit top speed, add extra seatbelt warnings, and limit the volume of the car stereo and more



Automotive Sector - Update

The Engineering Development Board(EDB) has reportedly taken strongexception to the failure of localmanufacturers in adhering to the visionof the Auto Industry DevelopmentProgramme (AIDP) of indigenisation,well informed sources told to leadingnews paper.At a recent meeting of auto industry'sstakeholders, the EDB top brassaccused them of being responsible forfailure of AIDP 2006-07 and urged forindigenisation of high tech parts by2011-12."The car manufacturers have notf oll owe d the AIDP v isi on ofindigenisation of alternator, startermotor, water pump, fuel pump, fuelfilter, seat recliner, air cleaner assembly,po wer st ee r in g , e ng i nes a ndtransmissions," the sources quotedChairman EDB Aitzaz Niazi as sayingin the meeting.However, the EDB chairman also facedcrit icism from the OEMs for notsupporting the local industry in letterand spirit.The government replaced the deletionprogrammes for the automotive sectorwith the Tariff Based System (TBS)from July 2006 to make auto sectorcompliant with the Trade RelatedInvestment Measures (TRIMS) underthe World Trade Organisation (WTO)regime.

TBS has the following mainobjectives: (i) preservation andpromotion of technologies thathave been developed in thecountry;(ii) protection to thepresent job structure in theauto sector;(iii) promote job

creation;(iv) protect the existingand planned investment by theOEMs and vendors;(v) promotenew investment; and (vi)expand the consumer base tocreate economies of scale.Incentives and protection available toauto sector under TBS are as follows:cars are enjoying 32.5 per centconcession in duty on non localisedparts and 50 per cent localised parts(protection), light commercial vehiclesnot exceeding 20 per cent concessionon non localised parts and 45 per centon localised parts.Motorcycles: 15 per cent concession onnon-local and 47.5 per cent on localisedparts. Auto rickshaw: 20 per centincentives on non-localised parts and50 per cent loc al ised. H eav y

Commercial Vehicles (HCVs) exceedingfive tons: 20 per cent concession onnon-localised parts and 50 per cent onlocalised parts. Buses (non CNG): fiveper cent incentives on non localisedparts and 35 per cent on localised parts.Buses (CNG): zero per cent concessionon non-localised and 35 per centlocalised parts and similar concessionfor tractors.

Total investment of vendorindustry is Rs82 bi ll ion.Investment was made on thetargets set in AIDP forproducing 500,000 cars by2012.However, auto industry productiondeclined significantly during last twoyears.The sources said that the vendorindustry was not operating at fullcapacity due to reduced demand fromOEMs thus affecting their return oninvest ment. Howev er, v endorscontention was that OEMs were notallowing corresponding increase inprice of components/parts and OEMshad gone into in-house production ofpa rts, the sources mai nta ined.According to sources, OEMs wereimporting parts being produced byvendors due to TBS-tariff differentialof 17.5 per cent.The sources said that the EDP top brasshad urged car manufacturers topurchase local parts instead ofimporting to support the local vendorindustry.The government has recently increasedthe age limit of used cars from three tofive years to compel local auto industryfrom over charging consumers.....

Adhering to AIDP's visionof indigenisation

EDB takes exception tolocal manufacturers' failure

The sources said that the EDP top brass had urged carmanufacturers to purchase local parts instead of importing

to support the local vendor industry.



Engineering Sector - Update

Advancement in engineering, scienceand technology is the dire need of thecountry to enhance the exports of thissector, which helps to boost economy.Engineering Development Board (EDB)should also extend his focus in a largereconomy scale of interest, said JunaidEsmail Makda, Vice President ofKarachi Chamber of Commerce andIndustry (KCCI).Meeting with Aitaza A Niazi CEO ofEDB, he pointed out there was generalperception in the business andindustrial community that EDB hasfocused its entire vigor on theautomobile sector. He pointed out the

related issues and highlighted thebudgetary proposal issue, which wasbeing in the process of formulationunder the EDB and also shared KCCIpoint of view in this regard.He said that presently, our economywas facing a set of internal and externalproblems that have impeded the growthof our industrial sector.Niazi said EDB was working ondifferent projects for promoting themat large scale of economy.About budgetary proposal he said, wehave formed a sectoral committeewhich comprises 15 sectors such asautomotive, steel, refectories andceramics, home appliance, surgical,electrical machinery, fans, pumps andmotors, heavy engineering, consumerelectronics, casting, farm machinery,wires and cables, paper products andchemical plastic and minerals basedproducts.Azhar Wa sim P ur i , Chai rman

Engineering Science and TechnologySub-Committee KCCI said Pakistan hasa huge potential in engineering sectorengaged more than 378 engineeringindustry exhibit the importance of thiscrucial sector of the fast developingindustrial bases.He proposed the strateg y forengineering sector in order to get moreshares in the world market, which isworth $6 tr ill ion per annum.He implored it was mandatory forsustained economic growth thatgovernment should focus this sectorand help to enhance the exports andfacilitate business community in thisregard.He highlighted the areas with greatexport potenti al, li ke surgic alinstruments, fans, auto-parts, heavyengineering (like vessels), ceramics,moles and dyes, steel sector items andelectrical capital goods.

The Engineering Development Board(EDB) has strongly proposed theFederal Board of Revenue (FBR) toamend the Income Tax Ordinance,2001 to reduce the rate of withholdingtax from one percent to 0.5 percent onexport of the engineering industry.Section 154 of the Income Taxordinance, 2001 deals with withholdingincome tax on exports which is to bededucted by the authorized dealers inforeign exch ange at the time of

realization of foreign exchangeproceeds on account of export of goodsat the rates specified in Division IV ofPart III of the First Schedule to theOrdinance. As per the Schedule, therate at which tax so deducted is 1percent of the export proceeds. Thisdeduction is considered paymenttowards final liability of income tax.Since this deduction is mandatory andconsidered final payment, the exportersof engineering products have to bear iteven if they are exporting on marginalprofits of making a loss.Such situations of marginal profits ormaking arise especially in cases wheremarket entry barriers are to beovercome through reduced first costoffers as a marketing tool or through

sunk investments in marketing andcreating after sale service set-ups. Evenotherwise, if exports of products ofengineering industry are to beencouraged a nd promot ed, thegovernment needs to extend all possiblefiscal incentives in this regard.The Reduction in rate of withholdingincome tax out of realization of foreignexchange proceeds of engineeringindustry exports would be a desirablestep in the direction. It is, therefore,proposed that Division IV of Part III ofthe First Schedule to the Ordinance,2001 may be suitably amended toreduce the rate of withholding incometax to 0.5 percent on exports ofengineering industry.

EDB demands cut in WHT onengineering industry exports

EDB to focus on largereconomy scale of interest

Meeting with Aitaza A Niazi CEO of EDB, he pointed out there

was general perception in the business and industrial

community that EDB has focused its entire vigor

on the automobile sector




T h e P l a n n i n gC ommi s si o n i sformulating an autopolicy, envisagingthe government toa b o l i s h t h eregulatory dutiesand reduce customsduty on import of

auto parts from zero to 10 percentAn Australian consultant of PC in ameeting held on March 31 proposed tobring down tariff rates in Pakistan atunified level of 10 percent across theboard. The consultant proposedimmediate cuts in motorcycle tariffs to15 percent or 20 percent to be followedby further cuts to a maximum of 10percent.The objective of this meeting was toreach consensus on rationalisation ofthe present tariff in the auto sectorwhich would eventually help inreducing the prices of local industry's

products, and give way to new entrantsshowing interest to come to Pakistan,in CBU or in SKD or CKD shape.It was proposed that non-tariffmeasures should not be used to controlimport and export, specific dutiesshould not be used, and tariffs shouldbe low and uniform. Uniformity meansthat tariffs on individual productsshould be the same for all importers,including trader-importers, says apaper, available with The News.The PC suggested that all concessionarytariffs should be available to all importlicensing at present being administeredby the Engineering Development Boardand by various line ministries. TheCommission has demanded immediatecuts (to a maximum and uniform rateof say 25 percent in all motor car tariffsand pre-announcement of further tariffcuts and other basic changes to autosector polices.He also proposed establishment of

some process for the evaluation of tariffchanges made outside annual budgetcycle and which are published in SRO.It was suggested that the Ministry ofCommerce publicise the reasons fora do pti on o r rej ec ti on o f th erecommendations of NTC.Si mi lar ly, NTC should ensurepublication of its past tariff enquiriesand all future tariff enquiry reportsbefore they are passed on to theministry and these publications shouldbe put on the website of Federal Boardof Revenue.In the past, National Tariff Commissionhas been bypassed by EDB and ministryof industries in many cases. Themeeting was attended by officials ofministry of industries, ministry ofcommerce, ministry of f inance,economic affairs division, EDB, FBRand NTC....

Planning Commission consultantsuggests duty reductions

Sales of locally assembled cars havecontinued to rise despite recentrelaxations in limitations againstimported cars, data shows.Cumulative automobile sales, includingcars, light commercial vehicles andpickups, touched 96,100 units in thefirst eight months of the current fiscalyear, representing an increase of 11.8pe r c ent c ompa red wi t h t hecorresponding period of the precedingyear.According to data released by thePakistan Automotive ManufacturersAssociation (PAMA), car sales touched84,225 units, up by around 12 per centwhen compared with the previous fiscalyear, but sales went down nine per centin February compared with January.While sales of 1,300cc cars edged downin February, production of smaller carsstepped up. Suzuki Alto productionstood at 1,292 units compared to just584 units in January. Similarly,production and sales of Daihatsu Cuorerose by close to 30 per cent each.Local assemblers have put up strong

resistance against the government’sdecision to ease restrictions onimported cars. PAMA argued that themove will put in jeopardy the local carindustry and threaten thousands ofjobs, but so far car sales have not takena significant hit despite the easy termsfor foreign competition. However, thereappears to be a general consensusamong local assemblers that thisscenario may change in comingmonths.Industry analysts point out that the realthreat will be faced by cars in the1,300cc and above categories, whilesales of smaller, more economical carswill not be affec ted as much.Motorcycles and three-wheelersSales of motorcycles and three-wheelerswere recorded at 526,509 units in theeight months, up from sales of 470,499units in fiscal 2010. However, month-on-month sales showed a slight declineof six per cent to 66,914 units .Hero motorcycles have clung to the topslot in terms of sales, followed closelyby Suzuki and Habib. Dealers attribute

the popularity of these brands to theirrela ti vel y c heaper pr ic es a ndwidespread availability compared withcompetitors.Sales continue to riseToyota Hilux continued to gainpopularity, as both production and salesof the model posted successiveincreases in recent months. InFebruary, 325 units of the pickup weresold.When compared with average sales ofjust 81 units per month during the lastfiscal year, it becomes apparent thatthe model is gaining signif icantpatronage. “Another version of thispickup has been localised and nowdouble-cabin is being manufactured inPakistan,” said Indus Motor MarketingDirector Reza Ansari. Citing theresultant lower price tag on the model,Ansari commented, “Part of th eincrease in sales for Hilux has been dueto this version.” He added that Hiluxhas gained momentum, as appeal forthe pickup has strengthened overtime......

Automobile sales up 12%




J. Pereira has taken over charge asGeneral Manager of the ProductSupport Division of Al-Haj FAWMotors (Pvt) Ltd. with effect fromJanuary 01, 2011. Pereira is a highlyqual ified engineer in the field ofAutomotive Engineering, Logistics,Transportation and Supply ChainManagement. He has over 25 years ofrich experience with the distributors ofglobal brands in Pakistan.Pereira studied at St. Patrick’s HighSchool in Karachi. Later he did hisDAE (Diploma of Associate Engineer)in the Automotive Technology from theGovernment College of Technology,Karachi, where he secured FirstPosition in the province of Sindh.Subsequently he did his B. Tech(Bachelor of Technology) Pass andHonors in Mechanical Engineeringf rom th e N ED U ni ve rsit y ofE ng i nee ri ng a nd Tec hn olo g y.He is a Chartered Member of theChartered Institute of Logistics andTransport of UK and is also a Memberof the Society of Automotive Engineersof Japan. Besides these, he is also anAssociate Member of the Institute ofthe Motor Industry of UK and theInstitute of Road Transport Engineersof UK. He is also an Affiliate of theSociety of Automotive Engineers ofUSA.Pereira did his Diploma in Logisticsand Transport and TransportationManagement from the CharteredInstitute of Logistics and Transport andthe Pakistan Institute of Managementrespec tiv el y. He quali fi ed inInternational Trade from the BusinessManagement Association of UK. Later

he did his PCCM (Programme for CrossCultural Management) at the AOTS(Association for Overseas TechnicalScholarship) in Japan.Pereira spent his initial career in theteaching profession at St. Patrick’sTechnical School. Subsequently heserved the distributors of global brandsin Pakistan namely, Detroit DieselAllison and AC Delco, Divisions ofGeneral Motors Corporation of USA,including Mercedes Benz of Germanyand Hino of Japan. He was alsoeng ag ed i n the Log ist ic s andTransportation of the bulk liquid,transport carrier fleet at CosmopolitanDevelopment Company Limited.He last served Hinopak Motors Limitedas Deputy General Manager of theProduct Support Division where hereceived numerous awards andrecognitions including the Gold Medalof Excellence for three consecutiveyears (2004-2006) for achieving thehighest level of customer satisfactionin Pakistan.At Hinopak Motors he set up a state ofthe art Training Centre and also serveda dual charge as Principal of theTraining Centre which was registeredwith the Sindh Board of TechnicalEducation. He is also the FounderMember who established the CentralCalibration Authorit y (CCA) incompliance to the requirements of ISO-9001.Pereira is an active member of thefaculty of the Chartered Institute ofLogistics and Transport where hedelivers lectures at the Diploma Coursein Logistics and Transport and theDiploma Course in Supply ChainManagement (SCM). His field ofspecialization is TransportationManagement.During a short span of four years Al-Haj FAW Motors has already sold overa thousand units of commercial vehiclesin the Pakistan market. Thus, keepingin view the rapidly growing demand ofFAW Prime Movers, Rigid Trucks andDump Trucks in Pakistan, Pereira is inthe process of developing a Master Planfor the establishment of the ProductSupport Division for the company.Through the Product Support Division

the company will beestablishing a strongdealership networkcomprising of 3S(Sales, Service andSpares), 2S (Serviceand Spares), 1S(Service Centres), 1S(Spares / P artsDealerships), DFIP (Diesel FuelInjection Pump) Laboratories and A/C(Air-conditioning) Service Centresacross the country.The company is focused towardsproviding prompt and efficient AfterSales Service backup to its valuedcustomers. At the same time thecompany is also striving to ensurereadily available Spares through itsdealership network across the country. Special emphasis is also being paid onthe right pricing of spares to ensurethat the operation and maintenancecost of the FAW commercial vehicle iswell within the acceptable limits of thecustomer.The company has a Mobile Workshopwhich attends to customers complaintson the spot. With the passage of timethe company will be adding on to itsfleet of Mobile Workshops across thecountry to provide prompt and efficientAfter Sales Service backup to customersat their door step.Simultaneously, the company will alsobe establishing a state of the artTraining Centre at its Head Officelocated at Zulfiqarabad along the mainNational Highway in Karachi. TheTraining Centre will cater to a widerange of Training Courses for its valuedcustomers and fleet operators acrossthe country. The courses will includeTechnical Training Courses for thetechnicians of the FAW dealers andcustomers, including Drivers TrainingCourses for the drivers operating FAWtrucks.The Product Support Division is beingestablished with the intention ofproviding Total Customer Satisfactionto its valued customers across thecountry even at the remotest oflocations.

Press Release

J. Pereira appointed GM ofAl-Haj FAW Motors



Agriculture Sector - Update

Fertil iser ImportDepartment (FID),a s ub sidia ry ofMinistry of Foodand Agriculture, hasbeen accused ofviolating fertiliserp r o c u r e m e n tg u i d e l i n e s i n

relation to a fertiliser deal. Ministry ofFood and Agriculture will hold a freshinquiry to fix the responsibility and findout irregular credit of Rs.1.469 billionto M/s National Fertilizer andMarketing Limited for purchase ofimported fertilizer.

During 1993-94, the FIDirregularly deliveredimported fertilizer on creditto a private party-NationalFertilizer and MarketingLimited on 164 occasionsthe cost of which wasworked out Rs 1.469 billion.The cost was recovered from the partyafter one year, resulting in increase ofinterest charges taken on equal amountof loans from the bank for running the

state trading scheme.Despite, clear direction to director FIDKarachi in 1994, not to deliver anyfertilizer to any distributing agencywithout advance payment, the creditwas given. An internal inquiry wascarried out by the department whichfixed responsibility on two juniorofficers.Special Public Accounts Committee(PAC) on Thursday declared the inquiryreport faulty as junior officers were notinvited to explain their position.Committee further directed theAdditional Secretary Ministry of Foodand Agriculture Khizer Hayyat to holda fresh inquiry within 15 days.Audit's interpretation of rules says thatthe cost of fertilizer was to be paid bythe private party either through a letterof credit opened in favour of the auditoffice in a scheduled bank or throughbank draft immediately on allocationof the share of fertilizer from a vesseland before getting delivery of cargofrom the department.The prescribed procedure was notadopted. The amount of interest on thedelayed payment at the authorized bankrate of 18 percent per annum workedout to Rs 50,898,175 which was notrecovered from the party.

In another case, thedirector general of foodplaced a freight contract ona firm (M/s Riha MaritimePvt. Ltd.) for shipment of98,000 metric tons ofwheat from Turkey to PortQasim in February 1993 at$20.16 per metric tons.On failure of the firm to provide theship, the department awarded the

contract to another firm at $26.50without carrying charges at the risk andcost of the original firm. The risk andcost amounting of $916,604 is stillrecoverable from the firm at fault. Thefirm's bank guarantee was also notencashed.Director General Federal Audit said therole of Security and ExchangeCommission of Pakistan (SECP) in thisparticular case was very poor. Thecommission intimated on December 5,2007 that th e company was notregistered with them. Again onDecember 25, they informed the auditthat the company had been dissolvedin 2003.The matter was also referred toNational Accountability Bureau (NAB)in 2003 but the owner of companysucceeded in out of court plea bargain.Ministry of agriculture informed thatthe matter was pending due to tusslebetween National Investment Bank andministry and assured the bankguarantee would be cashed.The special committee of PAC wasshocked over revelation of billions ofrupee irregularities and expressed theirconcern over the rosy affairs ofministry. The committee was chairedby Riaz Ahmed Pirzada.

Minfa dept violated rulesin fertiliser procurement

The matter was also referred to NationalAccountability Bureau (NAB) in 2003 but the

owner of company succeeded in out ofcourt plea bargain.




The imposition of 17 percent sales taxon agricultural inputs will add to thetroubles of the government as theoverall contribution of agriculturesector in GDP growth may decline by2-3 percent. Sources told BusinessRecorder that the growers would sufferR s 70 -80 b ill ion losse s as aconsequence of the government’sdecision to impose 17 percent sales taxon agricultural inputs which would jackup the prices of a number of agriculturalinputs.According to agricultural experts thetax would affect the overall agriculturalproductivity of Pakistan. The 17 percentsales tax on agricultural inputsincluding fertiliser, pesticides, tractorsand other inputs would cost the poorgrowers heavily, analysts maintain.

While talking to media, Chairman Agri-Forum Pakistan, Ibrahim Mughal, saidthat the decision will force theagricultural sector to pay a heavy pricefor the government’s flawed policies.“The government has decided toimpose 17 percent sales tax onfertilisers, tractors and pesticides whichis inexplicable. The present leadershipof Pakistan has put the country on apath of destruction and starvation”.While giving detailed information abouthow the agriculture sector will suffer,he said “About 80,000 tractors arebeing purchased by the growers perannum and after the imposition of salestax, they will have to pay Rs 8 billionannually more than before. An amountof Rs 300 billion was being spent topurchase fertilisers each year butimposition of tax will make the growerspay additional Rs 50-55 billion for the

purchase of fertilisers. For pesticides,an additional amount of Rs 7-8 billionwill be spent after the imposition oftax. This would also reduce Pakistan’sexports.”He lamented, “the contribution of theagriculture sector to GDP growth is 24percent that may decline to 19-20percent after this tax is imposed”.

Mughal said that with this additionalburden of Rs 70-80 billion on theagriculture sector, the total number ofpeople living below the poverty linewould increase from 80 million to 110million.The after affects of the imposition ofsales tax on agricultural inputs mayinclude an increase in the price of flourfrom Rs 32 per kg to Rs 40/kg, ricefrom Rs 95/kg to Rs 150/kg, eggs fromRs 62 per dozen to Rs 100 per dozen,goat meat from Rs 500/kg to Rs 600kg,beef from Rs 250/kg to Rs 300 per kg,chicken from Rs 240 per kg to Rs300/kg.He explained that it would havemultiple negative impacts on the fragileeconomy of Pakistan with an overalldecline in agricultural productivity thatwould lea d to an i ncrease i nunemployment. “Almost 5 million

tenants may be unemployed in the longrun”, Mughal stated.He urged the government shouldincrease the wheat support price fromRs 950/40kg to Rs 1500/40 kg withimmediate effect. He added that in casethe government does not increasesupport price farmers may be unableto sell their wheat crop this year as thecommodity is being sold at $321 perton in the international market. Feudalsreign supreme in the country that iswhy instead of imposing farm tax onincome mode the government hasdecided to impose tax on agriculturalinputs that would hit the poor farmingcommunity, he added.When asked Sartaj Aziz, former financeminister, about the 17 percent sales taxon agricultural inputs, he said, “it is

true that the government is forced totake this step due to the delayed bail-out package under the Stand-ByArrangement programme but approvalshould have been soug ht fromparliament. Instead of imposing tax onagricultural inputs, there should havebeen farm tax on income mode throughlegislation”, Aziz further stated.Dr Ashfaque Khan, former economicadvisor of finance ministry concurredwith Sartaj Aziz’s proposal to tax farmincome. But he added that cottongrowers earned over Rs 300 billionsdue to increased commodity pricesfrom Rs 6,000 per maund to Rs 12,000in international market. So what is thebig deal if they pay 17 percent tax onagri cultural inputs, he queriedrhetorically.

Sales tax onagriculture sector

Experts fear decline in GDP growth




Agriculture growth is vital to overalleconomic growth in Pakistan andannually it should be 4 percent, whichneeds new growth strategy, said WorldBank's senior official Dr Mark Cacklerlast week.He said this while speaking at a two-day "Round table Discussion onAgriculture and Water in Pakistan"which was jointly organised by thePlanning Commission of Pakistan, theWorld Bank, Food and AgricultureOrganization (FAO) of the UnitedNations and USAID.Dr Mark said that Pakistan should focuson following areas ; improve andenhance agricultural productivity; useof suitable technology in agricultureshould be encouraged, improved meansof communication for marketing beused; incentives should be provided tothe small farmers, growers be educatedabout th e efficient use of water,agriculture marketing be improved, hesaid.He a dded tha t inv estment i nagricultural sector is essential toenhance productivity, which alsoprotect produce from pest attacks andconsequently improve the liv ingstandards of rural masses. MarkCackler asked for adopting the bettermarket managements, encouraging theprivate sector in livestock and fisheriessector.He also asked for technological upg r a d a t i o n , b i o t e c h n o l o g y ,communications and incentives forimproving the existing system.Talki ng ab out t he key is sue sconfronting Pakistan agriculture sectorhe said that it needs better watermanagement practices, private sectorshould be encouraged to take part inagriculture development project,innovations in the livestock & fisheries

sector, improving market practices,climate change and in this regard thegovernment has to play an importantrole.Speaking on the occasion Dr MushtaqGill of South Asian ConservationAgriculture Network (SACAN) said thatover the time Pakistan has become awater deficient country and there a direneed to use available water efficientlyHe said that implementation of watermanagement mega projects has shownimmediate returns in terms of watersavings and productivity enhancementbeing cost affective, non controversialand well accepted by the farmingcommunity;The execution of on going projects isstalled due to severe financial crunch,while the World Bank, USAID andothers lending agencies may provideimmediate funding (Bridge financing)for continuity of th ese projects.He said that Pakistan could bringaround 28 million acres of land undercultivation by following the Alienmodels (UAE), Sanai (Israel/Egypt),Ghobi (China) and Rajasthan (India),which is equal to the total cultivatedlands of Punjab.Like Egypt's new areas, PressurizedIrrigation System should be encouragedin Thal, Thar, Cholis tan, Chaghi(Kharan) and others rain-fed areas. Forsustainable development, emphasisshould go beyond provision of watermanagement services to includeproductivity and profitability per unitof water, he concluded.Addressing the seminar, ChairmanIndus River System Authority (IRSA)Rao Irshad Ali Khan urged for buildingmore water reservoirs to enhance thewater storage capacity in the countryfor agriculture use and generatinghydel-power to counter ongoing energy

crisis.He informed that about 160 millionacre feet (MAF) flood water was wasteddue to low storage capacity in thecountry, adding only 8 million acre feetof water could be saved from wasting.He further said that live storagecapacity of the dams like Terbela,Mangla and Chashma were 11.5 MAFadding that the capacity would beenhanced up to 14.5 where as thecurrent requirement was 122 MAF perannum.He informed that Egypt has 1,000-daycarryover capacity, US 900 days India500 days while Pakistan has only 30days carryover capacity.Pakistan was heading towards waterscarcity in terms of per capita wateravailability adding that in the year 1951it had 56,00 cubic meter (CM), in 2007it reduced to 12,00 CM and it reached1000 CM during the current year, whilein next 15 years it would be reduced to800 CM.IRSA head said that government hasinitiated some mega projects in watersector including Mangla Dam uprisingwhich would add the live storagecapacity 2.88 MAF, Mirini dam, 0.152MAF Satpara dam 0.053 MAF, whileGomal Za m dam 0.892 MAF.Besides, he said that prospectivestorage of the under progress projectsincl uding Di amer B asha da m,Kalabagh, Akhori, Munda and KurranTangi would further increase the livestorage capacity up to 22.27 MAF.The main objective of the event was toshare the international best practicesfor efficient use of water resources andaddressing the challenges to enhancethe output of crops to achieve foodsecurity in the country....

Agriculture growthshould be 4pc

Investment in agricultural sector is essential to enhanceproductivity, which also protect produce from pest attacks

and consequently improve the livingstandards of rural masses.

Round table Discussion on Agricultureand Water in Pakistan


H a n n o v e r M es s e w a slaunched last night at theHa nnover To wn Hal l .German Chancellor AngelaMerkel was joined by PrimeMinist er of t he FrenchRepublic H.E. Francois Fillonat the HANNOVER MESSEwith France as PartnerCountry this year.Besides the 8th HERMESA W A R D p r i z e - g i v i n gceremony in honor of some ofthis year’s most promisingbreakthroughs in industrialtechnology was presented as well as theRepublic of France as this year's PartnerCountry.For Pakistan, however, the quality ofleadership was showing. From veryhigh showing of Pakistani firms at thisshow for four years, this year's showingis a dismal four firms located obscurelyin a corner in hall 4, with no hospitalitystand, no rep from th e PakistanEmbassy or the TDAP.The dynamic leadership of ex Ministerof Industries, Jehangir Khan Tareenwas instrumental in motivating andlaunching a revolution by bringing largenumbers of exhibitors (35-72) each yearalong with hundreds of trade visitorsfrom Pakistan bet ween the years 2005-2008. This resulted in creating a largenumber of engineering sector SMEexporters of engineer ing goods.However, Tareen's successors have notbeen able to look after the future growthof the engineering industry in anequally able manner. The TDAP, whichseems to have no strategy other thanto look after some traditional exportsectors does not seem to have a visionto grow exports of engineering goodsand services.Hannover Fair has proved the launchpad of many nations' engineering goodsindustry, including Japan, Korea,Taiwan, China and India. This wasrealized by the Ministry of Industriesduring Mr. Tareen's tenure and gooduse was made of this opportunity and

the Ministry as well as the EngineeringDevelopment Board worked closelywith the Private Sector as well as theDutch CBI for training and launchingP ak ist ani S MEs int o ex ports.With increasing raw material andenergy prices, lightweight constructionsystems are particularly popular atpresent. This theme park and SolutionsArea at hangover Messe will beexhibiting a host of products, systemsa nd c urrent trends rel ated tolightweight construction. Aluminum,composites and paper that are as lightas can be will be shown.Lightweightmaterials and constructions are hugelyimportant in saving energy andmaterials. Lightweight constructionthus acts as a central theme throughoutHannover Messe 2011, which is focusedon “Smart Efficiency”. Visitors with aninterest in lightweight construction willbe particularly drawn to two areas inIndustrial Supply, hall 6.The Light Weight Construction ThemePark is exhibiting products and systemsmade of lightweight materials, newtechnologies and solutions for a widerange of sectors, such as the automotiveindustry, air and space travel, shipbuilding, machine building, systemconstruction and regenerative energy.The Solutions Area represents the heartof the theme park and features practicalsolutions, major visionary exhibits andeng ag ing l ive demonstrat ions.Alongside experts from companies, the

solutions area will also behome to representatives ofvarious associations, who willbe available for individualdiscussions and presentations.Ad v a n c e d t e c h n o l o g ycharacterizes the electric boatproduced by AT Technologies,which features lightweightcarbon fiber construction.KSM Castings is exhibiting itsski lls in al uminum andmag n esi um a ut omo ti v elightweight construction.SHEET CAST Technologies

will be presenting its award-winningcomposite brake discs, while Metawellwill be showing its new light-directingsystems for solar power plants. Finally,Jacob Composites will be focusing onits specialism of mass produced carbonfiber products. One particularly eye-catching feature within the SolutionsArea will be a bridge made of paper.The structure exhibited by SWAP(Sachsen) GmbH will show just howmuch stability can be provided bycomposite paper materials. SWAPproduces honeycomb panels out ofrecycled paper, which are thenemployed for packaging, furniture, andeven rear spoilers! The daily liveproduction demonstration (1 p.m., H6,A26) should also prove particularlyintriguing. This will be staged by theEuro RTM Group, a working group thatis part of the AVK compositesassociation.The Lightweight ceramic/lightweightconstruction, light alloys, modern high-strength steels, composite materialsand joining technology. The programis made up of more than 40 half-hourpresentations, organized according tomaterials. Representatives of majorbusinesses are here to discuss the latestissues, along with speakers froml eading research insti tutes. . . . .


Engineering Sector - Event update

Pakistan Participation atHannover Dwindles to

JUST 4 Exhibitors

visit our websitewww.automark.pk

by our correspondent



International Automotive - Update

Guangzhou Automobile Group, theChinese partner of Japanese car giantsToyota and Honda, plans to sell Ashares in mainland China through amerger with GAC Changfeng Motor,the Guangzhou-based automaker saidlast week.Guangzhou Auto will issue 1.6 new Ashares or pay 12.65 yuan in cash foreach existing Changfeng share.Mitsubishi Motors Corp, GuangzhouAuto's Japanese partner, said itaccepted the cash offer and is expectedto receive 961.4 million yuan for its14.59-percent stake in Changfeng.In total, Guangzhou Auto will issue nomore than 470.11 million new A sharesat 9.09 yuan per share. The share swapratio represents a premium of 15percent over Changfeng's average shareprice of the last 20 trading days, or a29.56-percent premium over its averageshare price of the last three monthsbefore trading suspended on Oct. 28,2010....

Japan's auto parts makers, faced withcontinuing production interruptionsafter the March 11 earthquake, mayrelocate more factories to China as aresult of the disaster, according to aCh in es e go v ernme nt o ff ic i a l.About 70 percent of car parts in Chinaare supplied by local componentmakers and foreign companies withplants in the country, according to thenation's Association of AutomobileManufacturers. Yet some parts usedfor engines and electronic componentsare mainly imported from Japan and

other countries, Cheng Xiaodong, anofficial with the National Developmentand Reform Commission, said."Companies were not motivated tolocalize production of key componentsin China and the quake may changethat if they face rising difficulties in thefollowing months in supplying to theirChina assemblers," said Cheng, who isin charg e of the vehi cle pricemonitoring arm of the state planningagency. "China is the world’s biggestvehicle market and producer and itmakes sense for them to do so."

Nissan Motor Co.'s Chief ExecutiveOfficer Carlos Ghosn said about 40component suppliers in Japan remaini n diff i cult y a fter the q uake,complicating automakers’ efforts torestart production. Denso Corp., AisinSeiki Co., Hitachi Ltd., and others partsmakers suspended most or some oftheir production after the quake.Japanese automakers accounted for 23percent of car deliveries in China lastyear, according to the auto association.

Testing will continue 'until we arec o n f i de n t t h a t a ny r i sk o fcontamination is completely removed,'Nissan said.Nissan Motor said on March 18 that itwould monitor all its vehicles made inJapan for radioa ct ivi ty , a mi dinternational concern over efforts toavert a nuclear catastrophe at a strickenatomic plant."We will continue to implement allappropriate measures to reassure thepublic that all products from ourcompany remain within global lyaccepted safety standards," the

company.The testing will continue "until we arec o n f i de n t t ha t a n y r i s k ofcontamination is completely removed,"the automaker said.Attempts are being made by Japan'sSelf-Defense Forces to douse fuel rodsand prevent a calamitous radiationrelease at the Fukushima No. 1 powerstation.Levels of radiation there have fluctuatedwildly after the plant 55 miles northeastof Tokyo suffered critical damage fromJapan's biggest ever earthquake lastweek and the devastating tsunami it

unleashed.The government has set a 20-kilometerexclusion zone and told those livingbetween it and 30 kilometers from theplant to stay indoors as hourly radiationlevels in the some nearby areas spike.The twin disasters knocked out thecooling systems, sparking a series ofexplosions and fires. Authorities havesince raced to keep the fuel rods insidereactors and containment poolssubmerged under water.If they are exposed to air, they coulddegrade further and emit even moredangerous radioactive material.

Nissan to Monitor Vehicles for Radioactivity

Foreign carmakers wishing to buildnew plants or add capacity in China’sburgeoning car market are being toldby the government that if they wish toexpand, they must develop a low-costlocal car brand.While Beijing has spoken of promotinglocal car brands, no central governmentruling or written policy is known toexist on the subject.However, automakers confirm that thei ssue is c roppi ng up i n theirnegotiations to expand existing plantsor build new ones.French producer PSA Peugeot Citroën,which is pushing its cars upmarketglobally and, until recently, rejectedthe notion of producing low-cost cars,confirms that it is now studying thepossibilities.Phil ippe Varin, the group’s chiefexecutive, recently told the FinancialTimes India that developing a localbrand was “part of the deal” in its newjoint venture with Chongqing-based

producer Chang’an, which is installingcapacity to produce up to 200,000 carsa year from 2012 in Shenzhen.Volkswagen, which is seeking to builda new 300,000-vehicle plant in Foshan,southern China, confirms that it is intalks with its Chinese partners FAWand SAIC to develop local brands.“I believe there are changes to the policycoming,” said the head of Chinaoperations of one foreign carmaker,who asked not to be named.“Foreigners want more capacity; Chinais saying: ‘We want more own brands’.”From China’s perspective, co-operationwith foreign carmakers has yielded littlein terms of development of local brandsor transfer of intellectual property.“We made this decision a number ofyears ago that it made sense to play inthis area of the market,” said KevinWale, head of GM in China.However, the carmaker said that thediscussion is at an “early stage”.

Foreign groups told to make Chinese cars

Japan auto parts makers may move plantsto China, official says

Guangzhou Auto plansA share listing



International Automotive Industry - Update

Toyota Motor Corp., Honda Motor Co.,Nissan M otor Co. and Sub arususpended production at plants inJapan and were assessing damage afteran 8.9-magnitude earthquake struckoff the coast, triggering a tsunami andshaking buildings as far away as Tokyo.The shutdown could affect exports tothe United States of such cars as theToyota Yaris sedan, Scion XB and ScionXD, as well as t he Honda Fitsubcompact, Accord sedan and CR-Vcrossover. The temblor also affectedproduction of the Acura and Infinitilineups.

Toyota, the world's largest carmaker,said it evacuated workers from severalfactories in the quake zone. Toyota hastwo parts plants in northern Japan andtwo affiliates, Kanto Auto Works Ltd.and Central Motors Co., that assemblesmall cars in the region.Spotty phone coverage in the quakezone made it difficult for companies toget a clear picture of the extent of thedamage. Authorities in northern Japanwere beginning to sift through theregion's wreckage and tally the deathtoll when darkness fell.Toyota is one of the few Japaneseautomakers with a large manufacturingpresence in northern Japan, a regionit wants to make a center for small carproduction. In January, its CentralMotors affiliate opened an assemblyplant just an hour's drive from Sendai.That plant, with a capacity of 120,000vehicles, makes the Yaris small car forexport to the United States.Toyota's Kanto Auto Works affiliate hasanother assembly p lant in t heneighboring prefecture of Iwate. Thatplant also makes small cars, includingthe Yaris sedan, Scion xB and Scion xD.The Toyota parent company also hastw o parts plants in the region.Toyota spokesman Mike Michels said

it is not clear yet if U.S.-bound Scionsare i mpacted by the situati on.Toyota plants near the company'sheadquarters in Toyota City, in centralJapan, had resumed normal productionafter brief shutdowns, Corbett said.There were no reports of injuries fromthose factories. Possible damage wasstill being assessed.It sends the Fit small car, Accord sedanand the CR-V crossover to the UnitedStates, as well as the Acura RL andAcura TSX, Yamamoto said.The company was unsure whenproduction would resume.But Honda would close its R&D centerand the Sayama and Suzuka factoriesat least through next week, Yamamotosaid.

Nissan Motor Co. also suspendedoperations at factories throughouteastern Japan. Small fires broke out attwo assembly plants, including thefactory producing the Infiniti M sedanand GT-R sports car. They were quicklyextinguished, the company said.

The company also evacuated employeesfrom its technology center south ofTokyo after the power was cut off there.Fuji Heavy Industries Ltd., the makerof Subaru cars, closed five factories,said Kenta Matsumoto, a spokesmanfor the Tokyo-based company.Truck maker Volvo AB was also amongthose worst hit as its main productionoperation in Japan was forced tosuspend output.The Swedish company, among theworld's leading truck makers, saiddamage to its UD Trucks facilities inAgeo in southeastern Japan was mainlysuperficial. But it will be days beforethe company can do a full assessment,Volvo Trucks said.Volvo employs 10,000 people in Japan,and another 3,000 work at UD Trucks'dealerships.Volvo said the dealership at Sendai,close to the earthquake's epicenter, hadbeen seriously damaged, and it couldn'tyet say how other dealerships had beenaffected, Dow Jones reported.

Japan quake closes ports,threatens to disrupt autoshipmentsAll major ports in Japan were shutdown a ft er the 8.9 mag ni tudeearthquake and tsunami. If portsremain shut for an extended period,exports of Japanese automobiles toNorth America could be delayed,analysts said."It's a very bad situation," said DennisVirag, president of the AutomotiveConsulting Group."Japan has excellent ports but they'regoing to be the focus of rescue efforts.I don't know how much (non-reliefshipping) is going to be going out forwhile," he said.....

Toyota, Honda, Nissan,Subaru shut plants after

Japan earthquakeToyota is one of the few Japanese automakers with a large manufacturing

presence in northern Japan, a region it wants to make acenter for small car production.


April-2011

www.automark.pk

[email protected]


Not so long ago, Pakistan’s automobileproduction was confined to very fewindustries dedicated to two & fourwheeler production. With the passageof time investors from differentcountries came to exploit the emergingsector of automobile production & itsimmense need in the local market.Some survived & flourished whileothers were drained out due to ill trust& lack of interest shown by theconsumer for their product.The car industry was at its peak backin the years 2006 & 2007 as far as

production is concerned. In theyear 2007 alone Pak-Suzuki

Motor Company (PSMC)produced around 120,000units & was at the top ofthe local car productionshares with 62% NVS, withIndus Motor Company(IMC) following it with24% NVS.That golden era came to its end withthe increment of markup from leasingagencies & due to a sudden oil crisisglobally which resulted in a hike in ofpetroleum products.Very recently the production stats of

last year have been announced byPAMA. PSMC produced a total of 71998automobiles last year while IMCproduced a staggering 50557 vehiclesenjoying the second place after IMC.IMC is a brand name known to producequality product for the consumer whois willing to pay for it, where as PSMChas grown into a local leader ofaut omob il e ma nufa ct ur ing bydeveloping & manufacturing productsthat are affordable to the general public.With the increasing value of JapaneseYen in comparison to the weakeningvalue of Pakistani rupee, the cause ofPSMC has suffered a great setback. Theprime version of Suzuki Mehran, whichwas available for Rs. 375,000 aroundfive years ago, is now on sale at 568,000pkr. This difference in cost, whichconstitutes over 51% increment in amatter of five years, is evident on allthe variants within the range of PSMC.With reference to another article that

I wrote earlier; “People’s car ofPakistan, Suzuki Mehran”published in May 2010 editionof Automark, Suzuki Mehranwas the car that had enjoyedunmatched production statssince its introduction way backfrom the year 1990, due to itsaffordability, but the tables have


by Shahzad Tabishfrom NED UniversityExclusive Article on Automotive

Local AutomobileProduction Stats 2010

The Ultimate Achievers & losers

Focusing the ups & Downs&

In a recent visit to IMC, I cameacross a pi-chart that clearlydemonstrated the immensedemand of Toyota corolla in thelocal sector in comparison tointernational market. Inaccordance to that particularchart; Pakistan is currently theleader in the sub continent forthe sale of Toyota Corolla.

In the last year only a total of 1.5 million,(1,50,1558) motorbike units to be precise wereproduced in total. These include a total of654074 units from the Japanese brands whichconstitutes a share of only 43.55% while theremaining motorbike units were produced byvarious Chinese technology oriented industrieswhich constitutes a total share of over 56%.


There was a time when Japanese were a dominant force in thetwo wheeler sector locally, but with the involvement of Chinese

oriented industries the scenario has now changed, due to theincreasing cost of Japanese motorbikes in comparison to those

having Chinese origin which cost around 12000-15000 less thanthe Japanese counter parts.


Exclusive Article on Automotive

overturned now.

Due to the increased pricethe affordability factor of

Mehran has now beeneliminated. In the last yearonly, the sale of Mehran is

22710 units which isalmost the double of anyother counterpart fromPSMC, but the car whichhas made this productionfigure look humble is the

Toyota Corolla. Astonished?Yes, over 43000 units of

Toyota Corolla were sold inthe last year only. Do wehave a new people’s car

emerging?

In a recent visit to IMC, I came acrossa pi-chart that clearly demonstratedthe immense demand of Toyota corollain the local sector in comparison tointernational market. In accordance tothat particular chart; Pakistan iscurrently the leader in the sub continentfor the sale of Toyota Corolla.Sadly the fact behind these facts &figures clearly represent the classdifference widening in our country. Aswe all know, the brand name Corollain Pakistan is only associated to thehigher class of people who can affordfor the luxury it offers. One might thinkthat the sale of Corolla indicates theprospering nation, but in reality itdoesn’t. The depletion in the sale of thecheapest available locally assembledcar, Suzuki Mehran clearly indicatesthat the middle class is now unable topurchase the car. Summing up insimple words, the poor is becomingeven poorer & the rich are able tocumulate their wealth with the passageof time.So, what a common man turns to inorder to fulfill his transportation needs

after facing such dilemma? Surely therehas to be another way out.We have discussed earlier about thepeaking of car production in Pakistan,the very last year i.e 2010 has seen thepeaking of motorbike production. Acommon man, who is now unable topurchase a four wheeler in order tofulfill his transportation requirement,has now turned towards the muchcheaper two wheeler.As far as the two wheelers areconcerned, they basically belong eitherfrom Japanese or Chinese origins.Chinese involvement in local twowheeler sector has now been aroundfor a decade. In the very beginning onlyone or two brands came in to producethe reverse engineered design of local70cc motorbike for a much cheapercost, over whelming response frompublic for their product has encouragedmore & more investors to establishother such industries, producing thetwo wheeler.Considering the present scenario thereare around 67 brands in total;producing motorbikes for the masses.There was a time when Japanese werea dominant force in the two wheelersector locally, but with the involvementof Chinese oriented industries thescenario has now changed, due to theincreasing cost of Japanese motorbikesin comparison to those having Chineseorigin which cost around 12000-15000less than the Japanese counter parts.In the last year only a total of 1.5million, 1,50,1558 motorbike units tobe precise were produced in total. Theseinclude a total of 654074 units fromthe Japanese brands which constitutesa share of only 43.55% while theremaining motorbike units were

produce d b y v ar i ous C hine setechnology oriented industries whichconstitutes a total share of over 56%.These stats clearly demonstrate theimmense demand of the two wheelerin the local market. The cost has provedto be a decisive factor in the sale of themotorbike units. The market share ofChinese based manufacturers is on acontinuous hike due to the cheaperprice tag in comparison to the Japanesevariants. The quality standards are notas high in comparison to the Japanesemanufacturers but due to the immensed em a n d t he C hi ne s e b a s e dmanufa ct urers hav e now al soestablished state of the art facilities forthe production of two wheeler, locally.Uncompromised quality standardshave been set in certain industrieswhich have flourished as far asproduction is concerned, maintainingthe cost levels to a minimal.After this brief analysis we can concludet ha t t he ne ed o f i n di vi du altransportation remains a top priorityamongst the masses. To counter thisnecessity the individuals have to searchfor the best available option in termso f a ff o rd a b i l i t y , r e l i a b i l i t y ,serviceability, maintenance & runningcosts involved. In the past when the carproved to be an affordable & accessiblemedium, its product ion hikeddrastically. Looking at the present, theeconomy inflation has made the car adream for the middle class which hasnow turned over its attention to themotorbike arena, which is clearlyob serv ab le by the subst ant ialproduction figures achieved in the lasttwelve months only. Knowing that noone is listening, still; it has to be saidthat it is the responsibility of thegovernment to introduce a four wheelerlocally that could bring the car back tothe affordable category for the masses,considering the example of Tata nanofrom the neighboring country.Government has turned a deaf ear toall that is said, still; where there is awill, there is always a way. Cheers!


This is first time in the last 30 years orso that Japanese truck manufacturershave been threaten by one of reputedChinese automobile company FAWMotors, it is eminent that is has takenaway their dominant role in thePakistan truck market. FAW throughit distributor AlHaj FAW Motors hasbeen able to make its presence felt withthe transporters all over country. Thisis reason that in 2010 AlHaj FAWMotors achieved the brake through inthe corporate sectors customers whichresulted in selling 80 units to BilalAssociates, 20 units to Mega Logistics,20 units to Unique Enterprise & 40units to Adnan Carriage. It is worthmentioning that in year 2010 FAW hasbeen the second highest truck seller inthe market as compared to Japanese &Korean makes by gaining 23% ofmarket share with within fouryears.Within 4 years, AlHaj FAWMotors has been able to attract thesteadfast transporters operating theJapanese trucks in the last 30 years asit is really an incredible achievement.AlHaj FAW Motors launched firstmodel of FAW prime mover model J5P-330 in the market. As usual there wasluke warm respo nse f rom thetransporters but with aggressive salescampaign under competent ManagingDirec tor , M r. Bi lal Kha n thetransporters started about the FAWPrime Movers and induct in their fleet.No doubt the prices of FAW catchesthe attention of the transporters asmodel J5P-330 (6x4) introduced withprice of Rs.2,800,000 as comparedRs.3,600,000 of Hino model FM2P.Actually the lower price was one of thefactor but the transporters after havingoperated FAW prime movers, havefound out that FAW Model J5P-330performance, weight carriage capacity

of 60 tons (Some carried upto 80-90tons), low on fuel consumptionbecause 330 horse power engineo perat ing a t low R PM & lowdisplacement capacity, moreover it hasbeen successfully operating on allterrains (flat, hills & rough roads) inthe country.After the success acceptance of the FAWModel J5P330 AlHaj FAW introducedin the market Models J5M-240, J5M-2 60 & J5K-2 0 0 to ca ter therequirement of transports who arecarrying load between 20 tons to 50tons special providing contained service& oil TankersAlHajFAW has been working veryclosely with the customer. AdnanCarriage has been one of the biggestFAW fleet owner also one of maincontractor of Shell Pakistan. Shellexpressed its requirement to operateOil tankers with 48,000 liter capacitywhich mustbe coupled with at least 400 horsepower prime mover. Engine With 400horse power prime mover was notavailable in the country. AdnanContractor communicated same toAlHaj FAW who took up the Shellrequirement with FAW Motors, China.

FAW Motors has prime mover fittedwith 420 Hp in their product range.AlHaj FAW arranged meeting of Shellregional office management with FAWMotors in China and after havinginspected, FAW model J5P-420 theshell management decided to allowglobal-wise its contractors to inductFAW model J5P- 420 in their fleet tocarry 48,000 litre oil tanker. Havingreceived the shell approval, AdnanCarriage had placed order for 40 unitsof J5P-420 Horsepower which are nowoperating successful to the satisfactionof Shell & Adnan Carriage. FAW modelJ5P-420 has giving fuel consumption3.1 km per liter which is absolutelyfabulous for the Adnan Carriage tohave in their fleet with low costrunning Prime Mover carrying veryheavy duty tanker with 48,000 litrecapacity.FAW vehic les have g ained theconfidence of transporters also becauseAlHaj FAW has taken utmost care tomeet after sales requirements undervery customer-caring and vigilant ChiefExecutive Mr.Hilal Khan Afridi. Wehave well managed spare partsworkhouse at National Highway besideAlHaj FAW show room & workshop.


Automotive Sector - Company Review

Al-Haj FAW Motors achievedthe brake through in the

corporate sectorsIt is worth mentioning that in year 2010 FAW hasbeen the second highest truck seller in the market

as compared to Japanese & Korean makes bygaining 23% of market share with within four years.

by J. Pereira

continued on next page




We have over 300 on-line items andwe are constantly improving to increasethe line items. We also store & sell spareparts from our Shershah outlet for theconvenience of Hawksbay to SheerenJinnah Transports. We have appointed parts jobbers in Garden, Plaza andHawksbay area.Similar, we have well equippedworkshop and skil l fully trainedtechnical man power to meet ourcustomers’ maintenance and repairrequirements.We have already appointed dealers inSadiqabad, Mehmood Khot, Lahore tooffer service and spare parts. We arein process to extend the dealer networkto other cities such as Multan,Faisalabad, Islamabad and Peshawar.AlHaj FAW motors has entered in theautomobile market with a vision that

of our chairman Shahji Gul Afridi tooffer vehicles at affordable low pricewith high standard of performance,durability and reliability also low oilconsumption as be ing low RPMengines. We have not neglect the lightduty truck segments. We plan to 10tons light duty cargo truck by April,2011. Similarly, we have plan to launchva n a n d pi ck up wi t h b et t e rspecifications than Japanese availablein the market.

To make these vehicles available, weplan to locally manufacturing /Assembly in our state-of-art plant, withcapacity to produce 10,000 units peryear which will be into production byearly April, 2011 under the expert plantmanagement and one of the mostexperienced in the automobile industry,Director-Operation, Nadeem A.Salmi . This will enable AlHaj FAW toproduce the vehicles according tocustomers demand at less lead timewith high standard of quality. AlHajFAW has unique distinction rather onlyautomobile company which has HeadOffice, showroom, spare partswarehouse and workshop located atsame place for their customersconvenience....

The agriculture sector contributes over23 percent to the country’s GrossDomestic Production and yet accountsfor less than 1 percent of thegovernment revenues.The gross profitability for agricultureproducts such as cotton, sugar andwheat have increased by 100, 63 and52 percent respectively during the lasttwo years but tax collection from thesector remains minimal despite the factthat it continues to enjoy subsidizedinputs and freedom to charge pricesabove international prices, experts said.“Since 2008, gross profit earned on allmajor crops has improved considerably,-cotton 4.5x growth, sugarcane 63percent, wheat 52 percent and rice 21percent- whilst taking into accountincreases in costs, they said.They observed that the taxation onagriculture sector has always beennegligible and the share of federal taxcollection from agriculture sector hasbeen only 0.12 percent of GDP in 2003-2004. Noted economist Dr AshfaqHassan Khan pointed out that the lowshare indicated that the entire value-added chain in the agriculture sector

is nearly tax-exempted. He argued thatalthough agriculture’s share in nationalincome exceeds 23 percent, revenueraised from the sector is negligible.With limited tax potential of manysubsistence farmers, the land revenuesystem needs to be replaced byagricultu ral income tax for anysignificant increase in revenues fromthis sector.Experts are of the view that continuousrise in fertilizer prices as well as recentlyimposed taxation on agriculture inputsare cited as potential drawbacks foragriculture sector. However it is

important to understand that over thelast 3 years, crop prices have ralliedsignificantly, resulting in improvedfarm payrolls of late while Further,certain crops such as sugarcane havebeen known to trade above the notifiedsupport price. For example currentlyit is rumoured that sugarcane pricesdemanded by farmers is around Rs200per maund instead of the definedRs100/maund.Thus while the rising crop prices isbeneficial for inducing modern farmingtechniques, taxation of some inputs isunlikely to cause any significant dentin crop feasibilities. Furthermore,current price trends indicate that theinput-output gap continues to widenwhich begs the question whetheragriculture should continue to enjoytax benefits and significant subsidies.Given this framework, the recentlyannounced imposition of GST ontractors, fertil izer and pesticidesappears to be a step in the rightdirection –however it is late step, DrAshfaq said.

Agri profit grows over100pc; tax ratio below 1pc

Experts are of the view that continuous rise infertilizer prices as well as recently imposed taxation

on agriculture inputs are cited as potentialdrawbacks for agriculture sector.


CHEVROLETModel Price

Rs. 569,000CHEVROLET JOY CNG

Rs. 539,000CHEVROLET JOY Petrol

Price updated April- 2011

MEHRAN VX 800ccMEHRAN VX (CNG) 800cc

MEHRAN VXR (CNG)MEHRAN VXR

ALTO VX 1000cc

ALTO VX (CNG)

ALTO VXR

ALTO VXR (CNG)

Rs. 470,000Rs. 523,000

Rs. 516,000Rs. 568,000

Discontinued

Discontinued

Rs. 680,000

Rs. 730,000

SUZUKIModel Price

TOYOTA COROLLAModel Price

ALTIS 1.8 VVTi M/T

2.OD SALOON M/T

GLI 1.3 VVT-i Rs. 1,482,000

XLi 1.3 VVT-i Rs. 1,357,000

2.OD SAL SUNROOF Rs. 1,884,000

Rs. 1,794,000

Rs. 1,730,000ALTIS 1.8 VVTi A/T Rs. 1,815,000

LIANA 1.3L RXI MT PETROL

CULTUS Efi VXRI

CULTUS Efi VXRI (CNG)

LIANA 1.3L RXI MT (CNG)

LIANA 1.3L LE MT PETROL

RAVI PICKUP ST308R VX

RAVI PICKUP ST308R VX CNGBOLAN VAN VX Petrol

BOLAN VAN VX CNG

SUZUKI VAN CARGO

BOLAN VAN VTR PETROLBOLAN VAN VTR CNG

LIANA 1.3L LE (CNG)

Rs. 876,000

Rs. 918,000

Rs. 1,184,000

Rs. 1,255,000

Rs. 1,175,000

Rs. 551,000

Rs. 604,000

Rs. 612,000Rs. 666,000

Rs. 526,000

Rs. 1,246,000

Rs. 495,000

Rs. 546,000

SUZUKI SWIFT 1.3L PETROL Rs. 1002,500

NISSAN CARSModel Price

Sunny Ex-Saloon 1.6L M/T Rs. 1,225,000Sunny Ex-Saloon 1.6L CNG Rs. 1,305,000

S. Super Saloon 1.6L M/T Rs. 1,370,000

S. Super Saloon 1.6L CNG Rs. 1,450,000

NISSANS. Super Saloon 1.6L A/TS. S. Saloon 1.6L A/T CNG

Rs. 1,470,000Rs. 1,550,000

NISSAN DIESEL TRUCKSDiesel Truck PKB 211Diesel Truck PKD 411HDiesel Truck PKD 411EDiesel Truck PKD CD 411Diesel Prime Mover CWM 454

Rs. 3,000,000Rs. 4,150,000Rs. 4,260,000Rs. 4,600,000Rs. 5,500,000

CIVIC VTI Pt Oriel

HYUNDAI

Model PriceACCORD Rs. 5,866,000

CITY I-VETC AT Rs. 1,454,000CITY I-VETC MT Rs. 1,324,000

CIVIC VTI Mt

CIVIC VTI Mt Oriel

Rs. 1,659,000

Rs. 1,834,000

ACCORD CR-V Rs. 5,316,000

CIVIC VTI Pt Rs. 1,779,000

Rs. 1,909,000

HONDA

LAND ROVER

Rs. 2,269,431Rs. 2,545,000

Rs. 2,150,260

DEFENDER

(90 S/WJEEP STD)(110 S/W A/C)

(90 Soft Top)

Car / Light Vehicle Price ListCar / Light Vehicle Price List

APV 1.5L GLX MT (CBU) Rs. 1,840,000APV 1.5L GLX CNG (CBU) Rs. 1,915,000

2.OD STD 2000cc Rs. 1,459,000

DAIHATSU

Rs. 8,09,000Rs. 8,70,000

CX ECO (CNG)CX AUTOMATIC

Rs. 7,59,000CUORE CX

Model Price

CHERY QQ

CHERY QQ Petrol Rs. 588,000CHERY QQ CNG Rs. 628,000

Model Price

Hilux Pickup 4x2

Brand New Toyota Hilux Pickup, 4x2,Single Cabin, (Local Assembled)Standard Model

Rs. 1,519,000

Hilux Pickup 4x4 D/C

Toyota HILUX 2494cc, Diesel TurboCharger Common Rail Engine,4x4 Double Cabin

Model Price

Rs. 2,404,000

Model PriceModel Price


A substantial number of years agocoming across a large spectrum ofvehicles in Pakistan was not likely, withToyota as the most importantautomotive maker. However, the lastmany years ha ve wi tnessed aremarkable rise in the type of makesfor drivers to choose from. Partlybecause of home operations being builtand growth in second hand imports, amore assorted collection of vehicles canbe seen on city routes.Toyota is still the major automotivemaker in Pakistan with well-likedbrands like the Corolla outselling allother makes. Toyota has gained a heightof surety all through the numerousdecades of its market presence hereand as a consequence, enables tradersto gain top resale rate in the secondhand automotive sector. Though notprized for its style Corollahas lost sizeable market share tosportier, finer looking models like theHonda Civic.The Honda Civic is a close challengerfor the top place but in spite of several

years in Pakistan, it still ranks second.Accepted for its style and leisure, theCivic has become somewhat of a statusicon for the Pakistani elite. It haslaunched heaps of brands in Pakistanwith each one being more victoriousthan the preceding one. Hondaautomobiles also securetop resale price in the second handautomotive industry and are frequentlyattainable in papers and onlineclassifieds.On the other hand Suzuki has a coupleof considerably important brands inthe hatchback and coupe class by thename of Khy ber and Mehra n,respectively. These automobiles arevery reasonably priced and satisfyworking folks with tight budgets. Theyare also enormously affordable to getand manage, with brand new andutilized spare parts easily found in themarket.Though they do not sell the samebrilliant quality offered by Toyota andHonda, these automobiles are sturdyand are significant cash savers.

Some other makesth a t h a ve a ls obecome reasonablyestablished includean expansive line ofToyota models aswell as differentmakes like Ki a.D e s p i t e b e i n goffered in a more limited range andimported from other regions, thesemakes have become a lot moreestablished in the last few years.It is obvious that Pakistan's automotivesector is predominantly controlled byAsian automotive companies andthough a handful of European,American and Korean makes have beenthere for a few years, there is a massivelag between them and the largervehicles made by companies like Toyotaand Suzuki.Though Honda suddenly securedmarket share a only some decades ago,the condition were substantiallydifferent then and for Internationalautomotive companies to obtain aserious portion of the business will bea subst ant ia lly more di ff ic ultmission.The workings of the autoindustry in Pakistan have changed agreat dea l i n the la st decade.

by Syed Haider MehdiAutomotive Engineering, NED University

Toyota has been dominating theauto industry in Pakistan for decades

despite cars launched by otherWestern countries



The Honda Civic is a close challenger for the top place but in spiteof several years in Pakistan, it still ranks second.

On the other hand Suzuki has a couple of considerably importantbrands in the hatchback and coupe class by the name of Khyber

and Mehran, respectively.



Automotive Sector - Event Update

8th ITIF Asia 2011 Int’l Exhibition &Conference at Karachi Expo Centre


Fateh Group Hyderabad has signed acontract with China Yongxing BoilerGroup for the Purchase of a coal firedBoiler for 16 MW capacity power plantat a cost of US $7.5 Million. TheContract was signed by Yongxing Wang,Chairman Yongxing Boiler Group,China in the presence of Guanghui TangCountry Mayor representing China andGohar Ullah, Chairman Fateh GroupHyderabad. The Boiler will be shippedto Pakistan within 100 days and will beinstalled by the Engineers of ChinaYongxing Boiler Group. This will reducethe load shedding in Hyderabad.

Syed Mansoor Ali Rzivi, Business Manager Case New Holland, Pakistan visited OES Islamabad andhad a meeting with Dr. Tehseen Aslam, GM Projects Orient Energy Systems (OES) Islamabad. CaseNew Holland is a world leader in the agricultural and construction equipment business. During themeeting, business activities and different services that Orient offers to its clients were discussed...


Industry Event Corner - Update

In the picture, Syed Mansoor Ali Rizvi, Business Manager Case New Holland can be seen looking aroundfacilities and talking to OES staff. Dr. Tehseen Aslam, GM Projects can be seen standing next to him

Case New Holland and Orient EnergySystems Discuss Business Prospects

and Activities

Fateh Group signs contract with Chinese group

Guard Auto Zones at motorwayGuard Group, Daewoo sign MoU

Guard Group and Daewoo Pakistanhave entered in to an agreement toestablish Guard Auto Zones atmotorway on the facilities of Daewoofacilitation centres.Sheryar Ali Malik said concept of GuardAuto Zones is unique and the first inPakistan. Guard Group has 50-yearexperience in the filter manufacturingand Guard Fil ters are OEM onToyota/Suzuki/Honda/Hino and MillatTractors etc, he added.Sheryar further informed the visitors

that Guard Auto Zones are alreadypresent on Metro and Makro Cash nCarry chains of stores all over Pakistan,which is a landmark for the productsof Guard products and reflect theconfidence of world class stores of theworld.H. J. Kim Chief Executive Daewoo andhis delegation visited the Guard filterfactory and signed the MoU on behalfof Daewoo, while Sheryar Ali Malikinked the document on behalf of GuardGroup.


MADE IN PAKISTAN MOTORCYCLESRETAIL PRICE LIST

70cc Motorcycle

Retail Price

Rs. 42,500/=

Rs. 41,000/=

Rs. 41,000/=

Rs. 42,000/=

Rs. 40,000/=

Rs. 40,000/=

Rs. 49,000/=

Rs. 39,000/=

Rs. 45,000/=

Rs. 41,000/=

Rs. 41,000/=

Rs. 46,000/=

Rs. 47,000/=

Rs. 41,000/=

Rs. 65,500/=

Rs. 42,000/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 42,900/=

Rs. 40,000/=

Product &

Model Name

Aan AI-70

Asia Hero AH-70

Bionic AS-70

Crown Lifan CRLF-70

Challenger BA-70

Diamond SD-70

Dhoom YD-70

Eagle DG-70

Ghani GI-70

Guangta GT-70

Grace CT-70

Hero RF-70

Hero RF-70 Plus

Habib HB-70

Honda CD-70

Hi-Speed SR-70

Jinan JN-70

Leader LD-70

King Hero KH-70

Moon Star MT-70

Master MD-70

Metro Hi-Tech MR-70

New Asia NA-70

Sr./

No.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

Product &

Model Name

Pak Hero PH-70

Ravi Premium R1

Ravi Hamsafar-70

Road Prince RP-70

Royal Star RS-70

Royal RL-70

Racer AS-70

Safari SD-70

Sakai SK-70

Star DL-70

Sohrab JS-70

Sonica SM-70

Super Asia SA-70

Super Star SS-70

Super Power SP-70

Super Power Delux

Toyo TG-70

Target TT-70

Unique UD-70

Union Star US-70

United US-70

Zxmco ZX-70

Retail Price

Rs. 42,500/=

Rs. 47,000/=

Rs. 43,000/=

Rs. 41,000/=

Rs. 41,000/=

Rs. 42,500/=

Rs. 41,500/=

Rs. 40,000/=

Rs. 39,000/=

Rs. 39,900/=

Rs. 41,500/=

Rs. 42,400/=

Rs. 39,500/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 45,000/=

Rs. 41,000/=

Rs. 40,000/=

Rs. 41,000/=

Rs. 42,000/=

Rs. 40,000/=

Rs. 42,000/=

Sr./

No.

24.

25.26.

27.

28.29.

30.

31.

32.33.

34.

35.36.

37.

38.39.

40.

41.

42.43.

44.

45.

Price updated April-2011

MADE IN PAKISTAN MOTORCYCLESPRICE LIST



125cc Motorcycle 100cc MotorcycleBrand & Model Name

Habib HB-125

Sitara ST-125

Super Star SS-125

Hero RF-125

Honda CG-125 STD

Honda CG-125 DX

Metro MR-125

Ravi Storm-125 Euro II

No.

1.

2.

3.

4.

5.

6.

7.

8.

Retail Price

Rs. 88,000/=

Rs. 55,000/=

Rs. 54,000/=

Rs. 75,000/=

Rs. 89,500/=

Rs. 111,000/=

Rs. 55,500/=

Rs. 78,000/=

Brand &Model Name

Ghani GI-100

Habib HB-100

Honda CD-100

Sitara ST-100

Super Star SS-100

Super Power SP-100

Unique UD-100

No.

1.

2.

3.

4.

5.

6.

7.

Retail Price

Rs. 55,500/=

Rs. 55,000/=

Rs. 73,900/=

Rs. 55,000/=

Rs. 45,000/=

Rs. 55,000/=

Rs. 60,000/=

Sr./

No.

1.

2.

3.

Yamaha MotorcycleProduct &

Model Name

Yamaha YD100

Yamana Yama4

Yamaha YB100 Royale

Retail Price

Rs. 75,900/=

Rs. 72,000/=

Rs. 72,900/=

Sr./

No.

1.

2.

3.

4.

5.

Suzuki MotorcycleProduct &

Model Name

Suzuki Sprinter ECO

Suzuki Sprinter STD.

Suzuki GS-125

Suzuki GS-150

Suzuki Shogan

Retail Price

Rs. 69,000/=

Rs. 72,000/=

Rs. 82,900/=

Rs. 89,100/=

Rs. 79,500/=

51

MADE IN PAKISTAN MOTORCYCLESPRICE LIST

Automark Magazine | April-2011


Automark Magazine April 2011

Documents

Transcript of Automark Magazine April 2011